OREANDA-NEWS. Essar Steel has enjoyed a cordial, healthy and unblemished working relationship with the Railways for more than two decades. The current issue is not part of any scam.

Essar Steel suo-moto informed the Railways of its plan to export pellets, before the actual exports shipment, in its letter dated 13th August, 2013. This was necessitated due to the weak economic and steel market condition in the country. There was no malafide intention to short pay the Railways. In response to our letter seeking guidance, the Railways vide their letter 26th August, 2013 suspended movement of Iron Ore Fines to our units affecting our production adversely.

Subsequent discussions with the Railways and in line with their Rules and Regulations, Essar Steel, as a responsible Corporate Citizen, has agreed to pay the additional claim of the Railways, so that production can be resumed to normal levels as soon as possible. Essar Steel clarifies that out of the total production of 1.9 Mn Tonnes, since commissioning of the Paradeep Pellet plant in February 2012, only 100,000 Tonnes have been exported so far , in the latter half of August.(0.5%!)

Essar Steel believes that its responsible and transparent actions need to be acknowledged in a positive way. The insinuation on our corporate behavior is unjust and uncalled for, affecting our brand image and reputation.