Getco opposes ArcelorMittal’s Essar Steel bid - Report
Mint reported that Gujarat Energy Transmission Corp (Getco) has challenged the recommendations of the committee of creditors to accept the resolution plan of ArcelorMittal to acquire Essar Steel Ltd. The Gujarat-government owned electricity transmission company has approached the bankruptcy court in Ahmedabad to recover its dues in excess of INR 827 crore from Essar Steel. In an interlocutory petition filed a few days ago, Getco challenged the resolution professional and committee of creditors’ decision to ignore the dues of Getco. The dues concern transmission and wheeling charges
Getco said “It is submitted that the decision of the RP to admit the claim of GETCO at INR 1 as against the claim amount of INR 827.18 crore is without the application of mind. The claim amount has risen to INR 896.52 crore as on 31 October.”
Mint had reported on 5 November that a few Gujarat government companies, including Getco and Gujarat Maritime Board (GMB), were set to lose INR 1,150 crore if the Ahmedabad bench of the National Company Law Tribunal (NCLT) accepts ArcelorMittal’s proposal to buy Essar Steel.
In 1995, Essar Power had built a 515 megawatt power plant at Hazira, Gujarat. Of the total, 300MW was purchased by the erstwhile Gujarat electricity board (GEB), under a power purchase agreement (PPA) signed between GEB and Essar Power. For the rest of the 215 megawatts, a PPA was signed between Essar Power and Essar Steel. Getco was a wholly-owned unit of the erstwhile GEB before the latter was reorganised on 1 April 2005 into seven companies with functional responsibilities such as generation, distribution, transmission and distribution.
Source : Mint