Odisha to stay away from Bhushan Steel bid.

The Odisha government has decided to stay away from the sale of Bhushan Steel, which is one of the first 12 companies identified by the Reserve Bank of India (RBI) for insolvency and is slated to receive bids on December 23 from rival companies.

State Bank of India Chairman Rajnish Kumar said the bank had not received any reply to its proposal to the Odisha government to take a 26 per cent stake in the company. “We have not received any response from the Odisha government,” Kumar has told Business Standard.

As Bhushan Steel’s plant is located in Odisha, the bank had requested the state government to pick up a stake.

Bhushan Steel and Bhushan Power and Steel have been sent to the National Company Law Tribunal (NCLT) for resolution under the Insolvency and Bankruptcy Code (IBC) after they had defaulted on a combined debt of Rs. 87,000 crore.

BS