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ArcelorMittal challenges Gujarat Government, Essar Group over Hazira port licence


India

ArcelorMittal challenges Gujarat Government, Essar Group over Hazira port licence

SynopsisEssar Steel owns a 10 million tonnes per annum steel plant at Hazira in Gujarat, which is serviced by a captive jetty constructed at port.Shutterstock.comAHMEDABAD: ArcelorMittal Nippon Steel India Ltd (AMNSIL) has filed a petition in the Gujarat High Court against the Government of Gujarat and Essar Bulk Terminal Ltd seeking transfer of Hazira port…

Synopsis

Essar Metal owns a 10 million tonnes each year steel plant at Hazira in Gujarat, which is serviced by a captive jetty constructed at port.

Shutterstock.com

AHMEDABAD: ArcelorMittal Nippon Metal India Ltd (AMNSIL) has filed a petition in the Gujarat Excessive Court docket against the Government of Gujarat and Essar Bulk Terminal Ltd seeking transfer of Hazira port licence in its title.

Within days of acquiring Essar Metal under an insolvency assignment, AMNSIL had made an application to the Gujarat Maritime Board soliciting for that the licence be transferred to them.

Whereas the manager is yet to come to a name on the matter, the firm has approached the court declaring that the Essar Bulk Terminal Ltd (EBTL) holds captive licence as a nominee or trustee, primarily based on the petition filed under Article 226.

ArcelorMittal did now not acknowledge to e-mail and cell phone calls made for feedback.

Essar Metal owns a 10 million tonnes each year steel plant at Hazira in Gujarat, which is serviced by a captive jetty constructed at port.

“The petitioner is seeking the reversion of the captive jetty licenses,” AMNSIL mentioned in its petition, claiming it turned into a captive user of the quay and meant beneficiary under all of the licences and expansions.

“EBTL is now not an independent licensee… however merely a ‘nominee’ and ‘trustee’, retaining the two licences on behalf of and in belief for petitioner’s odd employ and again,” it mentioned adding Essar Metal has ceased to be identical neighborhood companies and subsequently EBTL now not stands eligible and doesn’t delight in any lawful as a license holder of the captive jetty.

Essar Bulk Terminal Restricted has denied this declaring that it’s miles an independent firm and there exists no nominee or trustee relationship between the companies.

In the Supreme Court docket licensed decision thought submitted by ArcelorMittal for Essar Metal under the Insolvency and Monetary catastrophe Code, ArcelorMittal had asked for directions to be given to the Gujarat Maritime Board and Essar Bulk Terminal Ltd asking them to continue the port providers and products at Hazira on the identical terms and prerequisites. What has changed since then is now not determined.

When contacted, an Essar Ports executive mentioned, “It’s miles regrettable that ArcelorMittal and Nippon Metal would pursue the sort of frivolous and legally untenable mumble. ArcelorMittal has been doing this habitually however what is sublime to us is that Nippon Metal will be supporting such an near. Their mumble is in violation of the signed agreements between the parties and will be in violation of the Supreme Court docket licensed decision thought submitted by them. Their sole purpose looks to be to profiteer unlawfully. We are confident that the judicial authorities will look thru their malafides and tackle the petition accordingly.”

ArcelorMittal had earlier also antagonistic Essar Bulk Terminal Restricted’s decision to make your mind up in under the unusual port coverage of the Government of Gujarat.

As per sources, the Gujarat Government has currently set apart the implementation of the unusual port coverage in abeyance as a result of ArcelorMittal representations.

Essar Bulk Terminal Ltd has also complained to the Government of Gujarat that ArcelorMittal and Nippon Metal are defaulting on funds of over Rs 450 crore which are owed to the port.

When asked, an Essar Ports executive confirmed that the Hazira port turned into now not fraction of insolvency proceedings which turned into only for the steel plant.

Investment of the steel firm in the port turned into only Rs 1.3 crore of the overall investment of Rs 3,200 crore, the manager mentioned.

Per the manager, 10 ports in Gujarat delight in opted in to the unusual port coverage and never imposing the coverage will residing off the Gujarat executive to lose ability earnings of higher than Rs 2,000 crore from Essar Bulk Terminal Restricted via extra wharfage and top price funds.

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