MUMBAI (Reuters) - Steel giant ArcelorMittal SA has raised its bid for India's debt-laden Essar Steel in competition with Russia's VTB and Vedanta Resources.

"The financial terms of the proposal are confidential, but represent a material increase to the previous offers made by the company," ArcelorMittal said in a statement.

(Reporting by Promit Mukherjee; Editing by David Goodman)