In an attempt to crack the whip on errant corporates, the finance and company affairs ministry has asked financial institutions to submit information on diversion and siphoning of funds by promoters of steel companies.
Institutional sources said in addition, the ministry had asked the Industrial Development Bank of India to submit details of additional sanctions amounting to Rs 1,080 crore for six steel projects in 1999. The six projects pertain to Essar Steel, Ispat Industries, Ispat Metallics, SJK Steel Corporation, Jindal Vijayanagar Steel and Usha Ispat.
The iron and steel sectors account for the second highest exposure after textiles and man-made fibres, of four financial institutions
