Sesa Goa acquired Assets of Steel Plant of Bellary Steel & Alloys

Vedanta Group firm Sesa Goa on 22 March 2011 announced that it acquired the assets of the upcoming steel plant of Bellary Steel and Alloys. The assets of the acquired company were transferred on as is where is basis to Sesa Goa.

The steel plant of Bellary Steel and Alloys was put on the block for sale by a consortium of lenders led by IFCI.

Sesa Goa had been looking at setting up value addition facilities, as desired by the state government (Karnataka). The acquisition of steel plant of Bellary Steel and Alloys will provides Sesa Goa with an excellent opportunity to set up such facilities. Also the acquisition will pave the way for Sesa Goa to expand its business into the steel sector and would be a strategic fit for the company as the BASL's steel plant is located in the iron ore rich belt of Karnataka.
BASL, a Karnataka-based company, had embarked on to set up an integrated 0.5 million tonnes per annum (MTPA) capacity steel plant with provision of taking it to 2 MTPA, at Bellary on 700 acres of freehold land. BASL however could not complete the project and ran into debt, following which the lenders consortium led by IFCI put it on the block for sale.