State Trading Corporation in December 2010 approached Sajjan Jindal-owned JSW Steel for recovering Rs 550 crore owed by Ispat Industries. JSW recently became India's largest steelmaker by capacity after it offered to buy 41% in Ispat for Rs 2157 crore. The government-owned trading house, STC wrote to JSW asking it settle the dues after it failed to get a response from Ispat. Ispat Industries owes various lenders about Rs 9500 crore, including working capital that JSW proposes to refinance through fresh loans at lower costs. JSW specified that lenders to Ispat gave them time till September 2011 to meet Ispat's debts.
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