Corporate Grapevine

Published: Aug 31, 2022
Updated: Aug 31, 2022

Ruias ‘learn’ importance of repaying bank loans

The Ruias and the LN Mittal group have decided to bury their past differences and smoke the peace pipe. The Ruias have decided to sell several infrastructure projects in India to the Mittals.

The settlement will end the ongoing legal dispute over the port assets, which include a 25 mtpa jetty at the all-weather, deep-draft bulk port terminal at Hazira, captive and adjacent to AM/NS, India’s flagship steel plant; a 16 mtpa all-weather, deep-draft terminal at Visakhapatnam, Andhra Pradesh; and a 12 mtpa deep-water jetty at Paradip, Odisha. The settlement also includes a 100 km transmission line. The Ruias say that with this, they have now repaid bank loans worth Rs 2 trillion to Indian banks.

The Ruias represent a classic story of how despite setting up billions of dollars worth of projects, repaying bank loans is as important as getting sanctions. Or else, a group’s reputation is in tatters.