Bhushan Steel employees to get new lease of life as Tata Steel promises to retain all 5000 workers as part of resolution plan

Employees of Bhushan Steel will get a new lease of life as Tata Steel said it will absorb all 5,000 employees of the debt-ridden company

FP Staff May 17, 2018 16:13:17 IST
Bhushan Steel employees to get new lease of life as Tata Steel promises to retain all 5000 workers as part of resolution plan

The Tatas' acquisition of Bhushan Steel will provide a new lease of life to 5,000 employees working at mills owned by the stressed company. Tata Steel has stated that it will not sack Bhushan employees if and when the proposed acquisition goes through, according to a media report.

That apart, Tata also wants to produce more steel at the three Bhushan units.

TV Narendran, Managing Director, Tata Steel, according to The Economic Times, said the company is planning to take Bhushan Steel's production to 4-4.5 million tonnes (MT). At present, the target's factories make around 3-3.5 MT of steel.

Meanwhile, the National Company Law Appellate Tribunal (NCLAT) will, next week,  hear Bhushan Steel promotor Neeraj Singal's plea against the acquisition of the company by Tata Steel.

Bhushan Steel employees to get new lease of life as Tata Steel promises to retain all 5000 workers as part of resolution plan

Representational image. Reuters.

Singal has sought a stay on the National Company Law Tribunal (NCLT) order approving Tata Steel's bid for debt-ridden Bhushan Steel under the corporate insolvency resolution process.

On Wednesday, Tata Steel said that any delay in the acquisition of debt-ridden Bhushan Steel may lead to governance issues as the latter has a running plant.

The National Company Law Tribunal (NCLT) on Tuesday approved Tata Steel's bid for Bhushan Steel.

"In the short term, I think the delay in the process (acquisition) is a concern. We worry about the governance issues since Bhushan Steel is a running plant," Tata Steel ED and CFO  Koushik Chatterjee said.

The committee of creditors (CoC) has approved Tata Steel's offer, which reportedly includes an infusion of Rs 35,000 crore along with a 12.27 percent equity in Bhushan Steel.

With inputs from PTI

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