EIL completes financial closure for integrated steel plant

Kolkata, Jun 29(UNI) Electrosteel Integrated Limited (EIL) has achieved financial closure for its Rs 4,956 crore integrated steel plant, with a capacity of 1.3 Million Tons Per Annum(MTPA), in Jharkhand.

The plant would have a captive power plant of 150 MW. The implementation of the project was scheduled to be completed in 30 months.

IL&FS Financial Services Ltd was the financial advisor and sole arranger for the project financing. The debt has been financed by a consortium of banks and institutions.

Long products such as wire rods and reinforcement bars were used largely by the infrastructure, construction and engineering sectors.

In view of the high momentum of economic growth and rising investment in infrastructure and real estate, the demand for long products, manufactured by the company, has witnessed robust growth.

EIL, an associate company of Electrosteel Castings Limited, the country's largest manufacturer of ductile iron pipes had a revenue of Rs 1184 crores in 2006-07, with a profit after tax of Rs 106 crore.

The project has been undertaken to focus on identification of opportunities for backward integration, expansion of its core DI pipes Business as well as investment in new business opportunities.

Pursuant to this strategy, ECL has obtained mining blocks of iron ore and coking coal in the state of Jharkhand.

ECL also manufactured Ductile iron Spun Pipes and Fittings and CI Spun Pipes. Besides, ECL also offers turnkey solutions for water transportation and sewerage management, which includes manufacturing, supplying, laying, operaing and transferring of complete DI Spun Pipes to 2,50,000 TPA in phases.

Recently, ECL has set up a manufacturing facility for low Ash Metallurgical Coke (LAMC) as a part of its backward integration programme.

UNI