MUMBAI: Lenders to Bhushan Power have accepted JSW Steel’s Rs 19,350-crore resolution plan for the stressed asset. They have also agreed to refund the money in case of an adverse order by the Supreme Court (SC) in relation to the litigations filed by Bhushan Power’s founder against JSW. The lenders’ agreement is in line with the apex court’s last March order that said if JSW makes the payment for Bhushan Power and loses the case, then the lenders will have to return the entire amount to the company.
JSW will be depositing the sum in an escrow account managed by a leading PSU bank over the next two weeks. JSW Steel declined to comment on the report. If the Bhushan Power deal concludes successfully, then JSW will be ahead of Tata Steel in terms of production capacity in India. Rival Tata Steel had acquired Bhushan Steel (which was promoted by Bhushan Power founder’s brother) through the bankruptcy route in 2018.
Three applications — two filed by Bhushan Power founder Sanjay Singhal against JSW and one filed by the enforcement directorate (ED) against an NCLAT order — are pending before the SC. Singhal has opposed JSW’s deal on the ground that the latter was a joint venture partner for a coal mine permit and a related party of Bhushan Power is barred from bidding for a stressed asset under bankruptcy rules.
