Reeling under huge debt ESL trying hard to revive
Reeling under huge debt and acute financial crisis, Electrosteel Plant (ESL) at Bokaro is trying hard to come up from this hurdle.
Following the guidelines given by Pricewaterhouse Coopers (PwC), the ESL management will take stiff steps to give a facelift to the steel plant at Bokaro, said Sunil Katial the Chief Executive Officer.
Presently, ESL has a debt of over Rs 10,000 crore and the State Bank of India started insolvency proceedings against the company; filed a petition at the National Company Law Tribunal (NCLT).
There is a 180-day timeline to decide on a resolution plan, though 90 days can be given in addition. If a plan is not decided, the company will go into liquidation, said an official.
The Calcutta bench of the NCLT has appointed Dhaivant Anjaria, who works as a partner in consultancy firm PricewaterhouseCoopers (PwC), will act in an individual capacity, but the firm will support the initiative.
ESL at Bokaro is a green field project at Siyaljori (in Bokaro) promoted by Calcutta-based Electrosteel Castings Ltd, is 2.51 million tonne steel plant, designed and built by the Chinese steel major Laiwu Steel Group Limited (LSGL). This is the first green field project with the Chinese technology started its production in the end of 2011. However, a downturn in the steel business, among other factors, delayed the execution of the plant, and ESL plunged into losses continuously, said Katial.
Since its beginning, we have faced many hurdles, said Dr CP Pandey, Senior General Manager ESL. “Instead of 2500 only 1000-1200 Chinese experts got their VISA to erect the plant, later their VISA was not renewed.
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