Will clear the liability, want to have a steel plant in India: ArcelorMittal tells SC
New Delhi, Sep 12 : ArcelorMittal on Wednesday told the Supreme Court that it was ready to pay Rs 7,000 crore - a liability which one of its sister concerns is burdened with for having 29 per cent stakes in now beleaguered Uttam Galva and KSS Petron - as it wanted to have its presence in India's steel sector and also live harmoniously with the banks.
Telling the bench of Justice Rohinton Fali Nariman and Justice Indu Malhotra that it would pay Rs 7000 crore, ArcelorMittal said: "I don't want to fight with Committee of Creditors. I find the (Essar Steel) plant worthy. I don't have a steel plant in India, It is worth it."
The Committee of Creditors comprises 16 lender banks that have financed the Essar Steel.
However, senior lawyer Harish Salve, appearing for ArcelorMittal, said that the company is willing to pay Rs 7,000 crore dues if it emerged as the successful bidder, but not as a precondition to become eligible to bid.
Telling the court to consider the bid of Rs 42,000 crore plus Rs 7,000 crore, Salve said: "If I am not the highest bidder, I go home. If you apply law, apply the law and see where we end up."
He said that Rs 7,000 crore, was already lying in its escrow account.
Salve said this as the court asked him if they could jack up their offer noting that if they clear their liabilities then they are at par with the NuMetal.
Salve said that they had acquired a little over 29 per cent stakes in the Uttam Galva but their's was a passive presence and at no stage they were promoters of the company now with sagging fortunes.
Even as Salve dwelt on the passive role of steel baron Mittal's company in Uttam Galva, senior counsel Mukul Rohatgi appearing for NuMetal said that they were co-promoters of the company.
On Rohatgi's intervention, Salve said: "Of course we had that right. We never exercised them. I never stepped into the shoes of promoters. I was never on the board or exercised voting rights."
Salve took exception to NCLAT holding that the stigma of NPA attached to KSS Patron cannot be cleared by KSS Global' by divesting its shares in 'KSS Petron' on 9th February, 2018.
The paragraph of NCLAT's September 7, 2018 judgment that troubled petitioner ArcelorMittal said: " Therefore, we hold that L.N. Mittal Group, a connected person of 'AM India Ltd.' being the promoter and in the control and management of 'KSS Petron' since 2011 and 'KSS Petron' having classified as 'NPA' by multiple banks, the stigma attached to it cannot be cleared by 'KSS Global' by divesting its shares in 'KSS Petron' on 9th February, 2018..."
It further said that ace... the stigma will continue for the purpose of ineligibility under clause (c) Section 29A, till the payment of all overdue amount with interest thereon and charges relating to NPA account of 'KSS Petron'.
Justice Nariman said "it is upsetting and is not correct at all".
In a counter attack on rival NuMetal, Salve described it as a Shell Company that was set up just seven days before it entered the field to bid for financially beleaguered Essar Steel facing insolvency.
Pointing to the holes in NCLAT judgment, he said that the Russia's VTB Bank backed Numetal's Rs 37,000 crore bid was accepted by the appellate tribunal without any riders.
He described as "highly unusual" the Russian bank's backing for the takeover of a sick Indian company.
He said on account of sanctions by the EU in the wake of Russia's annexation of Crimea, the Russian bank was barred from advancing any credits or trading or raising any capital from the market.
He said that the EU directives are enforceable here in India.
Meanwhile, NuMetal too has moved the court challenging three days time given by NCLAT to ArcelorMittal to deposit Rs 7000 crore to become eligible to bid.
Hearing on ArcelorMittal's appeal will continue on Thursday.
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Kharge says LPG crisis due to govt's lack of planning, BJP accuses Cong of creating anarchy
New Delhi (PTI): Leader of Opposition in Rajya Sabha Mallikarjun Kharge on Monday held the government responsible for the current LPG crisis by not taking preemptive measures, evoking a sharp counter from Union Minister J P Nadda, who accused the Congress of trying to create anarchy in the country and indulging in politics instead.
Raising the matter during the Zero Hour in the House, Kharge accused the government of not doing advance planning and making alternative arrangements for LPG imports as the government "knew" that the West Asia crisis could impact critical maritime routes and energy supplies.
Rebutting him strongly, Nadda, who is also Leader of the House, accused opposition parties, especially Congress, of not standing with the people but of instigating them.
"The LPG crisis has caused widespread panic across the entire nation. Its impact is severely affecting the poor and vulnerable sections, the middle class, ordinary households, restaurants, hostels, and commercial users," Kharge said.
India imports nearly 60 per cent of its total LPG requirements. Of this, 90 per cent of imports pass through the Strait of Hormuz. From this perspective, Kharge said the current situation has become a matter of serious concern for both domestic availability and price stability.
He said the effects of the LPG crisis are being felt in nearly every part of the country, and people in households are distressed.
Kharge sought to highlight that small roadside eateries, restaurants, hostels — all are impacted. From community kitchens to Ram Rasoi, everything has shut down. Not just homes — MSMEs and other commercial users are facing severe difficulties in obtaining LPG cylinders.
"It is concerning that many establishments have limited or completely halted their operations. Some are purchasing at exorbitant rates, over Rs 5,000 per cylinder," the senior Congress leader claimed.
Kharge further said that the Union Petroleum Minister had claimed in the Lok Sabha that there is no shortage of LPG and called for caution against rumours.
"But the ground reality proves the government's claims wrong," he added.
He said that when the government was issuing advisories to Indian citizens in Iran that the situation could worsen, it should have clearly stated that this could also impact critical maritime routes and energy supplies, and should have taken steps in advance.
"Government very well knew that a crisis was impending at the Strait of Hormuz. The situation would not have been that bad had advance planning and alternative arrangements for LPG imports done in advance," Kharge said.
He said the waiting period for cylinder bookings in the country has also been extended, now 25 days in cities and 45 days in villages/remote areas.
This has triggered panic booking and increased the likelihood of hoarding, he said.
The Congress leader questioned why the government did not take stringent measures if it knew that the LPG crisis in the country would escalate.
"Why didn't it take the people and opposition in confidence? This crisis exposes the government's dismal management and flawed foreign policy," he said, and demanded a discussion on the issue.
While Kharge was making his remarks, Chairman C P Radhakrishnan repeatedly asked him to conclude as only three minutes are allowed to a speaker during the Zero Hour. However, the Chair allowed him extra time.
Parliamentary Affairs Minister Kiren Rijiju said Petroleum Minister Hardeep Singh Puri had given a detailed response on the issue in the Lok Sabha, but Congress members did not hear him out.
The Minister said Leader of Opposition in the Lok Sabha Rahul Gandhi was given the floor in the Lower House to speak on the issue, but he spoke on other things instead.
Nadda lamented that the Opposition, especially the Congress, is not hesitating to indulge in politics even during times of crisis.
He said the current West Asia conflict is not due to India and has no contribution.
The senior BJP leader said a Congress leader has also been caught hoarding LPG cylinders.
"They are resorting to hoarding of cylinders. They are instigating people. They are inciting the peaceful people of the country, and this is very unfortunate that even in such a situation, they are indulging in politics.
"Instead of standing with the country, they are trying to create anarchy...This is condemnable," Nadda added.
