India’s infrastructure group Essar said it will procure capital goods from China worth five billion dollars in the next three years to execute various projects in steel, power, telecom, shipping and construction.
The goods would be sourced through Global Supplies (UAE) FZE, a subsidiary of Essar Global Ltd (EGL), which is setting up a new office in Beijing.
“We will use our office in Beijing to be a global sourcing base to procure capital goods required for our steel, energy, power, communications, shipping, telecommunications and construction businesses,” Essar Global Chairman Shashi Ruia told PTI here.
The Essar Group has finalised an investment plan of over 16 billion dollars over the next four years in capacity enhancement and technological upgrades in various businesses.
The requirement of capital goods for the execution of these mega projects is expected to be over 11 billion dollars.
“Over the next three years, Essar plans to procure over five billion US dollars worth of capital goods from China,” Ruia said.
Essar Power Holdings Ltd is expanding its capacity from the present 1,200 MW to 4,800 MW, for which two billion dollars worth of capital equipment is required. Essar Energy Holdings Ltd plans to expand its capacity from 10.50 million tons per annum (MTPA) to 32 MTPA, which will require two billion US dollars worth of capital machinery.
The rest one billion dollars worth of capital equipment from China is required for Essar Steel Holdings Ltd, which is expanding its capacity from 8.6 MTPA to 23.5 MTPA.