Tata Sponge Iron Ltd, a subsidiary of Tata Steel is likely to take over the operations of Usha Martin's (UML) steel unit in Jamshedpur on Tuesday, sources said.

Tata Steel had entered into an agreement with Usha Martin in September 2018 for acquiring it's one million tonne integrated steel plant in Jamshedpur for an estimated value of around Rs 4200-4600 crore. The deal was expected to be closed within six to nine months.

Calls and messages sent to Usha Martin’s Managing Director (MD) Rajeev Jhawar seeking confirmation did not elicit response.

The money from the deal will be kept in an escrow account of State Bank of India (SBI) and will be utilised to repay UMLs debt, sources said.

A Tata Steel official said the takeover is likely to happen this week without elaborating further.