We aren’t eligible to participate in Essar Steel re-bid: Jindal

MUMBAI: JSW Steel is not eligible to participate in the rebidding process for bankrupt Essar Steel as bankers have decided to allow only those who submitted expressions of interest for the first round of bidding, group chairman Sajjan Jindal said on Monday.

“We wanted to re-enter and give a good competition where bankers could have got more money; but they decided against it so we will not be bidding again,” Jindal said.

“The committee of creditors told us that we are not eligible to bid for Essar Steel in the second round, as we weren't part of the six companies that put up the Eois in the first round,” the head of the largest private sector alloy-maker told reporters.

The 10-million tonne Essar Steel, which owes more than Rs 45,000 crore to over 30 lenders, is the biggest asset on the block right now, and has been thrown open for rebidding after Arcelormittal and Numetal were found to be ineligible on March 23 on technical grounds.

“We had written to the Essar Steel lenders making a case to enter the bidding process without a partner,” Jindal further said on the sidelines of a press conference announcing a new facility in Texas with an investment of up to $500 million to make steel pipes and plates to serve the large oil and gas industry in the southern US state.

“Unfortunately, the bankers felt that if we were given an opportunity they'd have to advertise it in the newspapers and call for the bids again... people may have to call for the data centre to be opened which would further delay the process,” Jindal said, adding, “but we told them we will not wait for all those formalities but will straight away submit the financial proposal. But was turned down.”