Calcutta: JSW Group, which owns India's largest private steel company JSW Steel, has taken a 49 per cent stake in Brahmani River Pellets (BRPL), months after its rival Tata Steel dropped a plan to acquire it citing the lack of regulatory approvals.

BRPL, which makes iron ore pellets, is owned by Aryan Mining and Trading Corp Pvt Ltd, a joint venture between British mineral trading company Stemcor and Calcutta-based Saraf Group. While the overseas partner owns 73 per cent, the Indian promoter holds the remaining 27 per cent.

BRPL owns a 4-million-tonne (mt) pellet plant in Jajpur and a 4.7mt iron ore beneficiation plant in Barbil, both in Odisha. Besides, it has a 230km 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.

The size of the deal was, however, not disclosed by the company.

Tata Steel had offered to pay Rs 900 crore for the entire stake of BRPL. However, dispute among the promoters of Aryan Mining derailed the Tata plan. Stemcor and the Sarafs are locked in legal battles in Calcutta High Court and the Calcutta bench of the National Company Law Tribunal over the ownership of BRPL.

Sources said the JSW deal has the blessings of both Stemcor and the Sarafs and the deal will sail through this time.

On October 11, Tata Steel had informed the stock exchanges that regulatory approvals from the Reserve Bank of India, settlement of proceedings under Fema by the directorate of enforcement and approval from the income tax authority were to be provided by the seller before the conclusion of the deal.

"In the absence of clear approvals, the shares could not, in our opinion be transferred with a clear title," Tata Steel wrote to the bourses.

If successful, BRPL will give a much-needed toehold to the JSW group in Odisha which has rich iron ore reserves. The company is also trying to set up a steel plant in the state. Tata Steel now operates a 3mt plant at Kalinganagar and is looking to double its capacity.