The size of the deal was however, not disclosed by JSW. Tata Steel had offered to pay Rs 900 crore for the entire stake of BRPL. But disputes among the promoters of Aryan Mining derailed the Tata Steel's plan which, however, is not expected in case of JSW. According to the sources the JSW Group has the blessings of both Stemcor and the Sarafs and the deal will pass without any hindrance.
If the deal becomes successful, BRPL will give a much needed toehold to the JSW Steel in Odisha which has rich iron ore reserves. JSW Group is also trying to set up in the state. Tata Steel now operates a 3 MT steel plant in Kalinganagar and is looking to double is capacity.
BRPL, which makes iron ore pellets, is owned by Aryan Mining and Trading Corp Ltd (AMTC), a joint venture between British mineral trading company Stemcor and Calcutta based Saraf Group. While Stemcor owns 73 percent, Saraf Group holds the remaining 27 percent.
Brahmani River Pellets Ltd (BRPL) owns a 4 MT pellet plant in Jajpur and a 4.7 MT iron ore beneficiation plant in Barbil, both in Odisha. Besides, BRPL has a 230 km long slurry pipeline connecting the pellet unit to the beneficiation plant.
JSW Techno Projects Management Ltd., a JSW Group firm has executed the definitive agreements. The deal will be subject to the approval of the Competition Commission of India and other conditions set out in the agreements.
JSW Group, which owns India's largest private steel company JSW Steel, has taken a 49% stake in Brahmani River Pellets Ltd (BRPL), months after its rival Tata Steel dropped a plan to acquire it citing the lack of regularity approvals.