Bhushan Power & Steel: Iron Ore Sourcing Down 17% in Oct'19
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Bhushan Power & Steel - a major integrated steel maker with a capacity of 3.5 MnT has recorded iron ore sourcing at 0.29 MnT in Oct'19. The sourcing witnessed fall of 17% on monthly basis as against 0.35 MnT in Sep'19.
Sourcing from Rungta mines down 19% in Oct'19
Essel Mining stood largest supplier of iron ore for the month at 95,649 MT, up sharply by 42% as compared to 67,375 MT a month ago.
Rungta Mines stood second largest supplier at 88,097 MT, down 19% as against 108,281 MT in Sep'19. Procurement from Indrani patnaik witnessed at 68,747 MT as against 65,384 MT last month.
State owned miner- OMC mines recorded significant fall in supplies to Bhushan Power by 49% to 17,600 MT in Oct'19 as compared to 34,682 MT a month ago.
Iron ore supplies from Serajuddin and KN Ram dropped to nil for the month.
Towards early Oct'19, few Odisha based major merchant iron ore miners had decreased offers on bulk quantity purchase of fines. Serajuddin on 11th Nov'19 has increased iron ore lump offers for 5-18 mm (Fe 63%) by INR 300/MT to INR 3,700/MT (ex-mines, including Royalty, DMF, & NMET).
Bhushan Power & Steel Iron ore Sourcing Oct'19 & Sep 19
| Seller | October'19 | September'19 |
| Essel Mining | 95,649 | 67,375 |
| Rungta Mines | 88,097 | 108,281 |
| Indrani Patnaik | 68,747 | 65,384 |
| OMC | 17,600 | 34,682 |
| SN Mohanty | 9,990 | 9,979 |
| Kaypee Enterprises | 7,660 | - |
| Pattanalk Minerals | 3,850 | 11,550 |
| Serajuddin | - | 49,513 |
| KN Ram | - | 3,850 |
| Grand Total | 291,592 | 350,613 |
Source: SteelMint Research
Quantity in MT
Provisional Data
the figures include only rake movement, road movement is excluded
Bhushan Power & Steel NCLAT Case Update
Bhushan Power and Steel is one of the companies undergoing bankruptcy proceedings.
The Enforcement Directorate (ED) had sought legal opinion to challenge in the Supreme Court the National Company Law Appellate Tribunal (NCLAT)'s order asking it to return the Bhushan Power and Steel's Rs 4,025 crore worth of properties it attached recently. However, ED told to NCLAT that doing so will require amendment in Prevention of Money Laundering Act (PMLA).
The NCLAT in its order said that the ED has no jurisdiction to attach the property of a corporate debtor especially when an appeal is pending against such an attachment. The orders came as a result of ED's move to attach BPSL's properties. The ED had last week provisionally attached BPSL's properties, which included land, buildings and machinery of the company's plant in Sambalpur district of Orissa.
Also, the National Company Law Appellate Tribunal (NCLAT) on 14th Oct put JSW Steels Rs 19,700 crore payment to acquire Bhushan Power and Steel (BPSL) on hold.
Last month, JSW Steel moved to NCLAT seeking immunity to the corporate debtor from all civil and criminal liabilities, in the context of banking frauds against BPSL.
