In the first resolution of an NPA account on RBI's first list, JSW Steel is all set to buy debt-ridden Monnet Ispat for Rs 3,750 crore, ET Now reported on Friday quoting sources.

Monnet Ispat faces claims of Rs 10,359 crore from financial creditors and Rs 116 crore from operational creditors, the report said.

The company, which is part of the first lot of 12 defaulters referred by the Reserve Bank of India for insolvency proceedings, has a sponge iron unit with a capacity of one lakh tonnes a year.

The deal will be first such resolution of an NPA account on RBI's first list. Monnet Ispat lenders are believed to have got favourable legal opinion to sell the company to JSW.

The report further said that JSW Steel may announce takeover of Monnet Ispat on Monday.

Lenders had sought legal opinion on the matter, given close family ties between promoters of Monnet Ispat and JSW, ET Now reported.

Shares of JSW Steel were trading at Rs 305.70 apiece on BSE at 2:21 pm.