JSW Steel Ltd will support Ruia family’s bid to win back control of Essar Steel Ltd, reported LiveMint, citing people close to the development.

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According to the report, the sources have said that JSW is in talks to become an equity partner with the Essar group, along with foreign financial investors.

“We have equity partners who are backing the bid," Ruia was quoted as saying in the report without naming the investors.

Ruias have offered to repay the bulk of Essar Steel’s debt of Rs 54,550 crore, which is significantly higher than the Rs 42,000 crore bid by ArcelorMittal that was approved by the bankrupt steel maker’s committee of lenders.

The offer by JSW comes at a time when the resolution process for the Essar Steel has found itself in a big tangle. According to the report, if the Ruias are able to bring in the Jindals in to the play, it could pave the way for a big breakthrough for them. “If the Ruias succeed in convincing the court of their argument, I believe JSW will then come in as an equity partner," a source was quoted in the report.

The move will also be key for JSW that, as per reports, had earlier made a failed bid to become part of the Essar Steel resolution process. “Allowing the Ruias to stay on gives JSW the added advantage of keeping ArcelorMittal out," the source added.