JSW Steel to set up Rs 15,000 cr steel plant in West Bengal

New Delhi, Jan 28 (UNI) JSW Steel Ltd today said it will set up a steel plant in West Bengal with a capacity of six million tonnes per year (MTPA) with an investment of Rs 15,000 crore and is expected to be operational by March 31, 2011.

The Board of Directors has approved of its arm JSW Bengal Steel Ltd investing Rs 15,000 crore in setting up the steel plant in the state. The fund will be raised by way of equity of Rs 5,000 crore and debt of Rs 10,000 crore.

The company will invest about Rs 1,000-1,500 crore and the balance amount will be raised at an appropriate time by way of an Initial Public Offering (IPO), a statement said.

JSW's board also approved investment of Rs 825 crore, to be financed by way of debt of Rs 550 crores and balance out of cash accruals, in a captive power plant with a capacity of 300 megawatt (MW) that is to be commissioned by October 2010.

UNI SBA PDT ND1740