Bhushan Power & Steel Iron Ore Sourcing Down 8% in FY'20
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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 3.12 MnT in FY'20. The sourcing witnessed a fall of 8% on a yearly basis as against 3.40 MnT in FY'19.
Sourcing from Essel Mining dropped 6% in FY'20
Essel Mining supplies of iron ore for the fiscal year FY20 recorded at 0.99 MnT, down 6% as compared to 1.06 MnT a year ago.
Rungta Mines supplies fell 7% to 0.77 MnT for the year as compared to 0.83 MnT in FY'19. Sourcing from Indrani patnaik recorded at 0.50 MnT in FY'20.
State owned miner- OMC mines depicted a sharp fall by 40% in supplies to Bhushan Power at 0.49 MnT in FY'20 as compared to 0.82 MnT a yaer ago.
Serajuddin mines recorded supplies at 0.22 MnT, down 66% Y-o-Y as against 0.65 MnT in FY19.
Sourcing from Kaypee enterprises, SN Mohanty and Patnaik Minerals rebounded for the fiscal year to 0.05 MnT, 0.04 MnT and 0.03 MnT respectively against being nil in FY19.
Amid reduced booking, Odisha's major miners had reduced iron ore prices towards the end of the fiscal. However, few miners had already finished the EC limit, hence inhibiting sourcing by the miners towards the year end.
Bhushan Power & Steel: Iron Ore Sourcing FY'20 v/s FY'19
| Seller | FY20 | FY19 |
| Essel Mining | 0.99 | 1.06 |
| Rungta Mines | 0.77 | 0.83 |
| Indrani Patnaik | 0.50 | - |
| OMC | 0.49 | 0.82 |
| Serajuddin | 0.22 | 0.65 |
| Kaypee Enterprises | 0.05 | - |
| SN Mohanty | 0.04 | - |
| Pattanalk Minerals | 0.03 | |
| A.M.T.C | 0.01 | - |
| MG Mohanty | 0.01 | - |
| RP Sao | - | 0.04 |
| Grand Total | 3.12 | 3.40 |
Source: SteelMint Research
Quantity in MT
Provisional Data
the figures include only rake movement, road movement is excluded
The acquisition of Bhushan Steel and Power (BPSL) may be delayed further amid outbreak of deadly pandemic coronavirus.
JSW Steel was supposed to make payment before 16th Mar'20 for the acquisition of BPSL. However, JSW decided not to make a payment of 19,700 Crore to close BPSL without getting a final nod from the Supreme Court. This is because BPSL promoter Sanjay Singal filed a petition in the Supreme Court against National Company Law Appellate Tribunal (NCLAT) orders of clearing JSW bid to acquire BPSL under the insolvency and Bankruptcy code
JSW Steel has got the approval of NCLAT to acquire BSPL for INR 19,700 crore by providing it immunity from prosecution by the Enforcement Directorate.
The bench of two members said that JSW Steel will be immuned from the acts done by the former promoters of Bhushan Power & Steel Ltd. However, the honorable court also said that prosecution can be continued against the former promoters under the money laundering act by the Enforcement Directorate.
