Ispat Inds to raise US$500m to part finance its capex plan

Kolkata, Jul 25 (UNI) Ispat Industries Limited will raise US0 million through Foreign Currency Convertible Bond(FCCB) or External Commercial Borrowing(ECB) to part finance its capital expenditure plan of Rs 2,123 crore by 2009.

Speaking to mediapersons here today, Company Chairman Pramod Mittal said the company would need Rs 2,123 crore to finance its two greenfield projects and expansions programme of a plant.

''The company will set up a one million Tonne Per Annum(TPA) Coke Oven Plant at Dolvi, a 4.5 million TPA Pellet plant in Vishakhapatnam and undertake capacity expansion of existing Hot Rolled Coil plant from 3 million tonnes to 3.6 million tonnes per annum,'' Mr Mittal said.

The company also has plans to acquire mines in the global and domestic markets to ensure supply of raw materials to its factories.

''We have already acquired a mine in Nigeria and is in talks with Jharkhand and Maharashtra government for acquisition of mines in these two states,'' he said.

The company has signed MoU with Maharashtra, Jharkhand and Chattisgarh for capacity expansion of the existing steel plants, setting up of new steel plant and coal-based power plants(1200MW) respectively.

Meanwhile, Mr Mittal said the company, under Ispat Energy Limited, would set up a 110 captive power plant, which would be operational in 2009.

UNI