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UK-based Global Steel Holdings settles State Trading Corporation's Rs 2,210-cr claim

New Delhi: UK-based Global Steel Holdings Ltd Tuesday said an amount of Rs 2,210 crore has been paid to State Trading Corporation (STC) of India Limited.

Government-owned STC is a premier international trading company engaged primarily in exports, and imports operations.

Pursuant to a court order, an amount of Rs 2,210 crore has been paid to STC and no amount is due, Global Steel Holdings Ltd said in a statement issued here.

 UK-based Global Steel Holdings settles State Trading Corporations Rs 2,210-cr claim

Representational image. Reuters.

According to the statement, Global Steel Holdings Ltd (GSHL), Global Steel Philippines Inc (GSPI) and the State Trading Corporation of India Limited (STC) had a long-standing and successful business relationship since September 2003.

Due to an unprecedented meltdown in the steel industry and depression in the world economy during 2008-2010, GSPI suffered huge losses, and consequently, a substantial amount became due and payable by GSPI to STC, it said.

"Pursuant to conciliation proceedings between GSHL, GSPI and STC, a sum of Rs 1,605 crore, inclusive of principal and interest at a rate of 13.5 per cent per annum on USD benchmark rates, was awarded to STC and was to be paid by GSHL/GSPI as principal debtors and Pramod Mittal as a guarantor. STC had filed and/or caused to be filed diverse proceedings against GSHL, GSPI, Pramod Mittal and others in order to recover such sum.

"Pramod Mittal has paid and /or caused to be paid an aggregate sum of Rs 2,210 crore to STC, inclusive of the aforesaid Rs 1,605 crore as well as post-award interest, in full and final settlement of STC's claim," it said.

Now, no amount is due and payable to STC by GSHL, GSPI or Pramod Mittal, it added.

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Updated Date: Mar 20, 2019 19:55:25 IST

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