Amendments to the Insolvency and Bankruptcy Code (IBC) have not only practically debarred promoters from reacquiring their own assets but have also put the world’s largest steelmaker ArcelorMittal’s prospective bid for stressed steel assets — Bhushan Steel, Bhushan Power & Steel, and Essar Steel — in trouble.
In 2005, it came to India with grand plans of setting up a mega steel plant. It signed a memorandum of understanding (MoU) with the Jharkhand government for setting up a 12-mt plant in the state. A year later, the company signed another MoU with the Odisha government for a similar-sized plant. It had even signed an MoU with the Karnataka government for a 6-mt plant. But none of the projects had made any headway.