As per the sources, ArcelorMittal and the Ruias of Essar are expected to sort out their disagreement over a captive port in Hazira and adjoining power assets with both parties making a verbal commitment to settle the matter.

A senior spokesperson, who didn’t want to be identified, said that it will be an all-inclusive deal involving the entire energy and logistics infrastructure – power plants, transmission lines and the port captive to the Hazira steel plant.

The Ruias are seeking about $2.5 billion for the assets to pay off the bank debt on these assets, estimated at around $3 billion. A final decision is awaited soon.

The Hazira steel plant is the country’s largest single-location flat steel plant. It was set up by Essar at a cost of more than Rs 30,000 crore and was acquired by Arcelor Mittal in bankruptcy proceedings in 2018-19.