Tata Steel and Vedanta group are unlikely to join the fresh bidding process for the insolvent Essar Steel, reports The Economic Times.
The resolution professional had earlier said that both the bidders for Essar Steel — Numetal and ArcelorMittal — were found 'not eligible' leading to a fresh bidding process.
Tata Steel is likely to win the bids for Bhushan Steel and Bhushan Power. If Tatas bag the two companies, the firm will already be paying Rs 59,000 crore and will be on the top position in terms of domestic production capacity with nearly 25-26 million tonnes, said an expert quoted by ET. On the daily's enquiry about the firm's participation in the bidding process, a Tata sons' source said, "We have our hands full."
As per the source, Tata will not gain much with buying Essar. Even though Essar has a stronger presence in the West, it is an older plant and there are a few group units that are already catering to the demand in the west. Bhushan Steel, however, has captive mines and has relatively newer plants which may have been a bigger draw.
The Vedanta group is not keen if the auction process goes for rebidding, even though it had picked up the bid document earlier, the firm did not submit a bid. Sources told the daily that since Essar will be an expensive bid, the firm is not keen to participate. The bid estimate stands in the Rs 45,000-50,000 crore range.
First Published: IST