NEW DELHI: Russia-based VTB Capital-backed NuMetal has acquired 70 per cent in debt-ridden Odisha Slurry Pipeline Infrastructure Ltd (OSPIL), which feeds raw material to Essar’s Paradip steel plant.
The terms of the deal stipulate that NuMetal will repay all of the about H2,200 crore debt of OSPIL to get the 70 per cent stake from the firm’s current promoter, SREI Infrastructure Ltd, reports stated. OSPIL is the largest slurry pipeline in India and is strategic to Essar Steel plant in Paradip. The slurry pipeline transports iron ore from mines in Odisha for producing steel at the steel factory.
NuMetal is competing with ArcelorMittal, the world’s biggest steelmaker, to buy out Essar Steel in the bankruptcy auction currently on. Meanwhile, PTI reported that sources close to the company saw the move by NuMetal as “an attempt to put obstacles in the path of ArcelorMittal pursuing Essar”. (With inputs from agencies)