Lenders want Ruias to infuse Rs 2,500 crore in Essar Steel

To agree to debt-recast plan after Essar Steel gets fresh equity from promoters

Indian banks have asked the promoters of Essar Steel to bring in fresh equity worth Rs 2,500 crore into the company before it can go ahead with its proposal for loan restructuring. 

Once the Ruia family — the promoters of the privately held company — brings in its equity contribution of around Rs 2,500 crore, banks would take up the proposal to convert a part of the company’s debt into equity. 

The equity infusion by Essar would also include investment by a private equity firm which would pick up a stake in the steel company. 

Essar Steel has about Rs