ArcelorMittal pays Rs 70 billion to become eligible bidder for Essar Steel

The payment relates to dues on account of Uttam Galva Steels and KSS Petron, both classified as non-performing assets (NPAs) for more than a year

ArcelorMittal has transferred Rs 70 billion to an escrow account of State Bank of India (SBI) owing to payment of outstanding dues relating to defaulting firms in a bid to become eligible for Essar Steel.

Sources close to the development said a significant amount of around Rs 70 billion had been put into the SBI account with a proposal on escrow of the deposited funds. The move is said to be a demonstration of ArcelorMittal’s commitment to Essar Steel even though it believed it was an eligible bidder, they said.  A letter to this effect was sent to the committee