ArcelorMittal completed the acquisition of Odisha Slurry Pipeline Infrastructure Ltd for a net fee of Rs 1,860 crore, filling a much needed supply chain logistics gap to procure iron ore for AMNS India. The company complied with the March 2 NCLT Cuttack order and paid off creditors led by IDBI earlier this month. He also appointed three directors to the OSPIL board of directors. The pipeline is a key infrastructure for transporting ore from mines inside Odisha to the Port of Paradip, regardless of road or rail network. The ore is then turned into pellets, loaded onto ships and delivered to Khazira in Gujarat.
However, Kolkata-based NBFC Srei Infrastructure Finance Ltd, a Srei-sponsored fund that owns 69.81% of OSPIL, continues to contest the deal. SIFL, which also pledged Rs 321 crores to the pipeline, did not accept the funds transferred by ArcelorMittal as part of the settlement plan and kept the amount in a escrow account. He challenged the NCLT’s ruling before the Delhi Appeals Tribunal shortly after the March ruling, but the hearing on the matter was postponed due to blockages and other restrictions.