| While the institution has finalised the restructuring scheme of Jindal Iron & Steel, the debt of the other two companies is expected to be restructured in the coming months. | |
| While Jindal has outstanding of over Rs 600 crore, Essar Steel and Ispat Industries owe Rs 1,100 crore and Rs 375 crore respectively to the UTI. | |
| As per Jindal's restructuring plan, UTI has agreed to write off the total outstanding amount by over Rs 100 crore. Interest on the loan also stands reduced to 8 per cent from 14 per cent. While the principle amount of Jindal's loan is Rs 378 crore, the balance is the interest that has accrued on account of non-payment for a long time. | |
| Sources familiar with the restructuring proposal told Business Standard, "The interest rates for Jindal have been reduced and there will be a reduction in the interest amount that has accrued over the years." Jindal will be paying back this debt over four years. | |
| Meanwhile, senior Essar officials said that, "We are in talks with the UTI for restructuring of our loans. UTI has yet to finalise the terms of restructuring." Essar 's loan from UTI also attracts an interest rate of 14 per cent. | |
| Senior executives of Ispat also confirmed the development. "We are hoping to restructure our debt with the UTI in the next few months." | |
| Sources said that the restructuring proposal of both Essar and Ispat is similar to that of Jindal's. It is expected that the interest cost on their loans will be reduced to around 8 per cent and there could be a write-off on the accrued interest amount. | |
| The three steel companies had undergone a corporate debt restructuring led by a consortium of financial institutions, around a year back. However, UTI had not participated in the consortium.
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