ArcelorMittal Nippon Steel or AM/NS, a joint venture between ArcelorMittal and Nippon Steel recently announced that it has completed the acquisition of Bhander Power Plant in Hazira, Gujarat from Edelweiss Asset Reconstruction Company.
Bhander, a natural gas-based thermal plant with an installed capacity of 500 megawatt (Mw), will remain captive to AM/NS India’s steel manufacturing operations at Hazira, the company said. Although the size of the transaction was not disclosed, media reports estimated it to be about ₹500Cr.
Bhander Thermal Plant was commissioned in 2006 and commenced commercial operations in 2008. AM/NS purchased the plant under the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act, the company said in a press release.
Earlier this month, ArcelorMittal India Private Limited was selected as a preferred bidder for an iron ore mine license in Odisha following an auction held by the state government. “The Thakurani block in the district of Keonjhar, with estimated reserves of 179.26 million tonnes, is expected to make a valuable contribution to AM/NS India’s long-term raw material requirements,” the press release said.
The acquisition of the thermal power plant comes after ArcelorMittal got the National Company Law Tribunal (NCLT) nod for the Odisha slurry pipeline. Recently, NCLT has approved ₹2,359Cr resolution plan submitted by ArcelorMittal India (AMIPL) for Odisha Pipeline Infrastructure (OSPIL).
We welcome the judgment by NCLT Cuttack approving our resolution plan for the OSPIL, having previously secured unanimous approval from the Committee of Creditors (CoC). The 253-km pipeline connects AM/NS India’s iron ore beneficiation plant in Dabuna to its pellet plant in Paradip in Odisha. Following approval by NCLT, we now look forward to completing the formalities that will see ownership of the asset transferred to AM/NS India,” said an ArcelorMittal spokesperson.
ArcelorMittal added that it will seek requisite clearances, as well as mine development and production agreements, ahead of commencing mining operations.
“Efforts to become increasingly self-reliant, in this case through the procurement of a key energy source in Gujarat and an iron ore-rich reserve in Odisha, form part of AM/NS India’s medium to long term strategy to significantly grow our production capacity in India,” said Dilip Oommen, CEO of AM/NS India.
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