KOLKATA: The National Company Law Tribunal (NCLT) on Tuesday approved Tata Steel 's bid for Bhushan Steel Limited (BSL), clearing the deck for the bankrupt mill’s acquisition by India’s oldest maker of the primary infrastructure alloy.The NCLT also dismissed a plea filed by the employees of Bhushan Steel opposing Tata Steel's bid. "The financial creditors shall receive a total consideration of Rs 35,200 crores for the settlement of the existing financial debt of BSL," Tata Steel said. Bhushan Steel owes nearly Rs 56,000 crore to its lenders.Acquisition of BSL will be a key element in Tata Steel's domestic growth strategy under new Tata Sons chairman N Chandrasekaran. With Tata Steel tipped to enter into a joint venture with ThyssenKrupp of Germany for its European steel business, the focus is clearly back on growth in India.Tata Steel’s domestic steel capacity, now at 13 million tonnes, is poised to be augmented by 5.6 million tonnes with the Bhushan Steel acquisition. Bhushan Steel makes flat products like hot- and cold-rolled coil (HR/CR coils) and galvanised sheets.The resolution process for BSL, which was referred to NCLT in July 2017, has had its share of challenges.

Source: Economic Times May 15, 2018 06:33 UTC