ArcelorMittal Nippon Steel Buys Essar Power Orissa

ArcelorMittal Nippon Steel India has acquired Essar Power Orissa, another captive power plant of Essar Steel through the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (Sarfaesi) Act, for Rs 450 crore.

BY Realty Plus
Published - Wednesday, 03 Feb, 2021

ArcelorMittal Nippon Steel Buys Essar Power Orissa

ArcelorMittal Nippon Steel India has acquired Essar Power Orissa, another captive power plant of Essar Steel through the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (Sarfaesi) Act, for Rs 450 crore. The large part of the debt of Essar Power Orissa was held by SBI and Edelweiss. Last year, AM/NS bought Bhander power plant, a 500 MW natural gas-based thermal plant at Hazira, through a bidding process, from Edelweiss Asset Reconstruction Company. Both the acquisitions put together would have cost AM/NS about Rs 1,000 crore and resulted in 100 per cent recovery for the lenders. AM/NS has paid the money upfront to banks and restructured both the distressed assets to become self-sufficient for its power requirements. The company has plans to revive both the plants through unique design capacity and competitive sourcing of natural gas from global markets. Essar is largely exiting its coal-based power portfolio keeping in mind the green energy requirements and will concentrate its efforts on building a renewable power and storage portfolio.