Final call on JSW-AION bid for Monnet Ispat likely in fortnight
New Delhi: A final decision on the lone bid for debt-laden Monnet Ispat and Energy Ltd is likely within a fortnight, a person in the know of the development said.
The resolution plan submitted jointly by JSW Steel and AION Capital was the only offer that Monnet Ispat and Energy received by 23 December—the last date for submission of the bids for the company. The JSW-AION offer has been approved and the lenders have sent it for legal vetting the fate of which is likely to be decided within 15 days, the person said.
Monnet Ispat & Energy was the first stressed company to get resolution plans from prospective bidders. It was among the 12 non-performing assets (NPAs) referred by the Reserve Bank of India (RBI) for insolvency proceedings.
The company owes more than Rs10,000 crore to its lenders. As per the rules, the entire insolvency process has to end within 270 days. Priority should be 180 days and if not cleared another 90-day time can be sought.
Monnet Ispat and Energy Ltd (MIEL), the flagship company of Monnet Group, has a sponge iron unit with a capacity of one lakh tonnes per annum (TPA). MIEL has an integrated steel plant at Raigarh which has a production capacity of 1.5 million TPA to produce hot rolled plates, rebars and structure profiles to cater to the rapidly growing infrastructure and construction industry.
Sajjan Jindal-led JSW Steel is in expansion mode. It has plans to raise its capacity to 45MT by 2030 from 18MT at present.