Essar Steel auction: Numetal shareholder TPE promises 'quick turnaround'
As the race gains heat, TPE, an engineering major from Russia, reiterates its global experience
February 28, 2018 / 06:13 PM IST
Tyazhpromexport JSC (TPE), part of the Numetal consortium that has bid for Essar Steel, on Wednesday said it will "ensure a quick turnaround" of the latter's steel plant.
"TPE experts will help in early restart and fast execution of the projects lying incomplete at Hazira. TPE will also carry out studies for installation of new facilities in order to maximise production from the profitable routes and optimise production from the loss making lines," the company said in a statement.
TPE is a leading engineering agency and owned by Rostec – a USD 19 billion Russian state corporation.
"We can ensure Essar remains one of the key players in the story of growth of steel production in India. TPE will continue to expand its collaboration with other Indian steel companies to provide technical expertise and expand operations in India," said Ismail Mazanaev, MD, TPE India.
Historically, TPE has played an integral role in building some of India's largest steel facilities, including those in Bokaro, Bhilai, Durgapur and Visakhapatnam.
The Numetal consortium is led by VTB Group, which owns 40 percent stake in it. TPE has 10 percent shareholding in Numetal. Aurora Enterprises, in which Rewant Ruia is a shareholder, and Indo International Trading, hold 25 percent each.
Earlier this week, Numetal clarified that if one of its stakeholders is deemed ineligible to bid for Essar Steel, then the rest of the partners would buy out that shareholder.
There have been questions on the involvement of Rewant Ruia who is the son of Ravi Ruia, one of the founders of the Essar Group.
ArcelorMittal and Numetal have bid for Essar Steel. The resolution professional overseeing the auction is expected to meet Committee of Creditors on March 5.