JSW to raise R10.6k cr for Bengal steel plant
fe Bureau: Mumbai, May 18 2011, 02:21 IST
JSW Steel, India’s third largest steel manufacturer, will raise about R10,600 crore debt in the current financial year for its proposed steel plant in West Bengal. The company’s consolidated net debt gearing as on March 2011 stood at 0.84 against 1.65 last year. Net debt in JSW’s books as on March 2011 was at R14,200 crore. It also has cash of R2,300 crore as on date. JSW Steel is poised to become the largest steel manufacturer with 14 million tonnes of capacity (including Ispat) by next month. Seshagiri Rao, joint MD and Group CFO said, “For the first phase of 3 million tonnes, we would tie up debt requirement of R10,600 crore for our proposed steel plant in West Bengal in the current fiscal. The total cost of the project is fixed at R16,000 crore.” The project is expected to be completed over a period of three years. The company plans to set up a phased 10 mtpa facility in Salboni in West Bengal. The steel major has planned a capex of R15,000 crore to be spent over three years (excluding West Bengal project), of which R8,000 crore will be spent in the current year. Meanwhile, the company has started the process of land acquisition for its proposed 10 mtpa steel plant in Jharkhand. JSW Steel's shares on Tuesday were marginally up by 0.41% to close at R924.90 on the Bombay Stock Exchange.
Going ahead, JSW will also increase its capacity to 12 mtpa from 10 mtpa at Vijayanagar.
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