The Indian conglomerate has offered to buy the shares of the Australian company at 0.50 Australian dollar per piece, higher than Jindal's bid of 0.42 a share.
Rocklands Richfield on Wednesday said that on October 4 it received a competing takeover proposal from Essar Mineral Resources Ltd, which is part of the Essar Group.
"Essar proposes to acquire 100 per cent of the shares in RCI at an offer price of 0.50 Australian dollars cash per share through a scheme of arrangement or friendly takeover," the firm said in a filing to the Australian Stock Exchange.
Sources said Essar offer is valued at USD 150 million.
On September 22, RCI had announced that it had entered into a term sheet with Jindal Steel and Power regarding the Indian entity's proposal to acquire the Australian firm at a price of 0.42 Australian dollars per share.
RCI in the filing said the company would convene a board meeting to consider the merits of proposals from Essar and Jindal and decide which would be the superior one.
Asked about the rival bid, a Jindal Steel and Power spokesperson said, "At this point of time, we are maintaining a strict silence. We do not want to discuss anything further".
An Essar spokesperson said, "We are looking at growth opportunities. However, it is our policy not to comment on any specific issues".
The offer from Essar is a "19 per cent premium to the Jindal proposal as announced on September 22, 2009," the filing noted.
"We acknowledge receipt of the Essar proposal. We are indeed very honoured that two of the largest Indian groups of companies are interested in taking over RCI.
"Both groups appear to be seeking to expand their investments in Australia," RCI Chairman Benny Wu said.
The Australian firm noted that if the Essar proposal is selected, the Indian entity would commence due diligence on the company.
However, the filing said there is no assurance that Essar would be satisfied with the outcome of its due diligence nor that the deal would be reached.
As per the Essar proposal, the group would pay a "break fee" of $1.5 million if the proposed deal fails to materialise, subject to certain conditions. The fee would represent one per cent of the value of the planned transaction.
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