ArcelorMittal offers Rs 4,800 cr for Essar Mahan

Mumbai, February 18 

Steel giant ArcelorMittal has proposed a resolution offer of Rs 4,800 crore to lender of stressed Essar Mahan power project, over 37% higher than offered by the promoter Essar Group.

Essar Group has made a resolution offer of Rs 3,500 crore under one-time settlement (OTS) scheme for Essar Mahan, which is a 2x600 MW coal-based power plant situated in Madhya Pradesh.

“We had earlier received a resolution offer of Rs 3,500 crore from the developer (Essar Group) himself for Essar Mahan under OTS scheme. But, now we have received an offer from ArcelorMittal for about Rs 4,800 crore,” PFC chief Rajeev Sharma said.

Besides PFC, other lenders to Essar Mahan are ICICI Bank, which is the lead bank, Punjab National Bank (PNB) and Rural Electrification Corporation (REC). The total debt of the power plant is of Rs 7,500 crore.

The offer made by ArcelorMittal is at Rs 4 crore per MW, Sharma said adding that the prevailing rate for setting up a new power plant is Rs 6 crore per MW. — PTI