The world`s largest steelmaker, ArcelorMittal SA, said on Friday its India unit would form a joint venture with Japan`s biggest steelmaker Nippon Steel & Sumitomo Metal Corp to buy Indian steelmaker Essar Steel India Ltd, which is undergoing bankruptcy proceedings.

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ArcelorMittal unit ArcelorMittal India Pvt Ltd submitted a plan to India`s National Company Law Tribunal, which deals with insolvency and company disputes, on Feb. 12 to bid for Essar Steel in partnership with Nippon Steel. 

In February, ArcelorMittal and a group led by Russia`s VTB made separate bids for Essar Steel, which faces claims of nearly $8 billion from banks and other creditors and suppliers.

At the time, ArcelorMittal offered a "detailed industrial plan" for Essar Steel, aimed at improving its performance and profitability.

Essar Steel was among a dozen of India`s biggest debt defaulters that were pushed to bankruptcy court last year after a central bank order aimed at clearing $147 billion in bad loans at the nation`s banks choked lending.