Essar Steel Registers Growth In Production

Essar SteelBSE 0.41 % registered a growth of 29%, quarter on quarter in flat steel production for the quarter ending June 30. Total production stood at 1.57 million tonnes compared to 1.21 million tonnes in the same period last year.

Capacity utilisation for the quarter stood at 83% while pellet production grew by 36% to 2.75 million tonnes. Supplies to OEMs from segments like auto, white and yellow goods reported a jump of 64% at 2.05 lakh tonnes compared to 1.25 lakh tonnes in the same period past year.

The steelmaker has been embroiled in proceedings around its lenders' referral of the company to the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code, 2016 after the RBI's directive to banks. Essar Steel, however, in a recent announcement, has termed the RBI decision as unfair and asked for more time to close its restructuring package with banks.

"Essar Steel's operational performance has improved in the past one year and it should be given more time to close its restructuring package with banks agreed to in January this year," Prashant Ruia, Essar group director had told ET in an earlier interview.