Abhijeet Group inks Rs 4,500 cr deal with Australian firm

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New Delhi, Nov 21 (UNI) Power and steel major Abhijeet Group today signed a 20-year coal mining contract with Sydney-based Theiss Leighton Pvt Ltd to develop an opencast mine in Jharkhand at a cost of Rs 4,500 crore.

''This is just the beginning and we look forward to having long-term relation with our new mining partner,'' Group Chairman Manoj Jayaswal told reporters here.

The work on the project, which has a capacity of 6.75 million tonnes per annum, will be started early next year, he said adding that the Group had acquired a mining area of six square kilometre two years back.

''We will invest about Rs 40,000 crore to build three steel plants, with production capacity of 10 million tonnes (MT) in Jharkhand, Maharashtra and West Bengal,'' Group Director Abhishek Jayaswal said.

He said the Jharkhand plant will produce three MT of steel, Maharashtra two MT and West Bengal will have a capacity of five MT.

Commenting on the funding, Mr Jayaswal said it would be both from internal accruals and debt, and plans to go public in the next couple of years.

On being asked whether the firm will sell the coal extracted from the mine, he said it would be used as captive raw material source in the Group's upcoming steel and power facilities in Jharkhand.

Mr Jayaswal said the work for the Jharkhand plant will be commenced in the next three months, adding that the Group has roped in ILF&S for its West Bengal project.

UNI

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