Uttam Galva Steels plans to reduce risk as it faces insolvency proceedings

A supplier, DF Deutsche Forfait, had filed insolvency proceedings against it at NCLT

The Miglani family-controlled Uttam Galva Steels is in the process of entering into a raw material supply agreement with JSW Steel, in a bid to mitigate risk to the company in the wake of insolvency proceedings.

"The agreement is a long-term agreement and is aimed at ensuring that raw material payments are not stopped," sources close to the development said. Uttam Galva Steels has raw material requirements of around Rs 350 crore a month, supplied by five companies, which would now be replaced by one. The arrangement, however, is subject to approval of the company's board and lenders.

Uttam Galva's