ArcelorMittal shares fell more than 2 percent on Tuesday after the world’s largest steelmaker said it had raised its offer for India’s Essar Steel , prompting concerns that it was overpaying, Reuters reported. ArcelorMittal is forming a joint venture with Japan’s Nippon Steel & Sumitomo Metal Corp to bid for Essar in competition with bids from Russian lender VTB and Vedanta Resources. It said on Monday that it had submitted a revised proposal representing a “material increase” on its two previous offers.

Second-round bids put in by Russia's VTB Group-backed Numetal Ltd, ArcelorMittal and Vedanta will be opened on Monday, people with direct knowledge of the development said. The Resolution Professional, overseeing the auction of Essar Steel to recover over Rs 49,000 crore of unpaid loans, sent emails to all the three bidders to be present on Monday for the opening of the second round of bids, they said. This follows an NCLAT judgement last week on the eligibility of bids.

Indian lenders haven’t yet been able to restructure 12 stressed loan accounts in the power sector, people with knowledge of the discussions said, underscoring the risk that these may be referred to bankruptcy courts after $52 billion of debt came under scrutiny following a central bank directive, Bloomberg News reported. It was thought that a resolution was possible in seven of these assets, the people said, asking not to be identified as the information is private. Under a central bank directive in February, lenders had until Aug.

A rare default in India’s corporate debt market may prompt households to scrutinize the fine print on money-market funds, which have grown in popularity over lower-yielding bank savings accounts as inflation concerns spread, Bloomberg News reported. IL&FS Financial Services, a unit of a infrastructure finance firm that helped fund India’s longest tunnel, last month missed a payment on its short-term borrowings, according to a filing.

Investors may grow more cautious of buying money market funds after IL&FS Financial Services Ltd. defaulted on its short-term borrowings, according to the Indian unit of Moody’s Investors Service, Bloomberg News reported. IL&FS Financial Services couldn’t repay some of its commercial papers on due date, though the company later settled the debt on Aug. 31, an exchange filing showed on Thursday. The default is likely to drive risk aversion among investors who have been piling into the commercial paper market as rising bond yields make long-term debt unattractive.

Qatar Airways is reviewing plans for its own domestic Indian airline due to “confusing” foreign ownership rules and could work with a partner in India or take a stake in IndiGo instead, its chief executive said on Tuesday. The state-owned Gulf carrier has long coveted the Indian aviation market, which is the fastest growing in the world, and in 2017 said it would set up a domestic airline, a year after India eased foreign investment rules for the sector, Reuters reported.

Emso Asset Management, the $5.5bn emerging markets hedge fund, is to enter India’s growing corporate restructuring market with a local partner, the latest global investor to target a wave of $140bn in bad debt in the country, the Financial Times reported. A new bankruptcy law is forcing some of India’s biggest conglomerates into restructuring as local banks struggle with mounting bad debts following a boom in industrial lending.

Jindal Steel & Power Ltd. is considering a breakup plan as part of a restructuring to help trim its 420 billion rupee ($6 billion) debt pile and boost investor confidence in a company that was once India’s biggest steelmaker by market value, Bloomberg News reported. The New Delhi-based company is looking at splitting its steel, power and international businesses into three separate entities, Chairman Naveen Jindal said in an interview. Any such plan would need the approval of lenders, regulators and the board, he said.

India’s banks have stepped up a drive to sell the assets of companies that can’t repay their debts. A deadline set by the central bank to restructure an estimated 3.6 trillion rupees ($51 billion) of stressed loans expired on Aug. 27, driving at least a dozen companies into bankruptcy proceedings, Bloomberg News reported. Many of the other indebted companies are finding buyers, adding to already record levels of mergers and acquisitions in Asia’s third-largest economy this year.

Varde Partners Inc. and Aditya Birla Capital Ltd. are creating a joint venture to invest as much as $1 billion in distressed assets in India, according to people familiar with the transaction, who asked not to be identified because the information is private, Bloomberg News reported. The U.S. investment firm and Indian financial services provider, helmed by billionaire Kumar Mangalam Birla, are expected to deploy this sum over three years, one of the people said. The venture, which will scout for deals of up to $100 million, may be announced as early as this week, the person said.