Prakash Industries to raise $100 mn through FCCB issue

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New Delhi: Prakash Industries, a business house with interests in steel & power is in the process to raise around $100 million through an FCCB issue.

The funds to be raised would be utilized to put up 625 MW thermal power plant at Champa, Chhattisgarh. The plant will be ready by 2013 and would come at a cost of close to Rs.2500 Crores.

The proposed captive power plant will enable Prakash to secure its own long-term power needs while the surplus power will be sold through open access on spot prices. The company has been allotted Fatehpur coal block in Chhattisgarh for power expansion projects.

Prakash Industries Ltd (PIL) is a three decade old company focused in steel, power and mining. The company has one of the largest integrated steel plant (set up in technical collaboration with Lurgi Germany) through coal based sponge iron route in Chhattisgarh with state of the art technology equipments. Prakash Industries has planned to double its steel making capacity in the coming years.

Company is presently operating 100 MW captive power plant using Waste hot gases from the sponge iron kilns and coal based boilers. Company is the first in the country to set up Waste Heat Recovery Boiler (WHRB) with DRI kilns.

PIL is one of the largest player in the private sector in finished steel segment. The company is into manufacturing of high value added products like Wire Rod and Structurals. The company is also in the process to start manufacturing of TMT bars by October’ 2009.

Company has also planned backward integration to fulfill the raw material requirement for its operations. It is operating a captive coal mine at Chotia in Chhattisgarh to fulfill coal requirements of the DRI Kilns and has also been allotted coal block at Madanpur in Chhattisgarh for expansion requirements. Company has also been allotted Iron Ore Mines which are expected to be operational during this year.