Moreover, the board has decided to set up a 6 MTPA integrated steel plant through its subsidiary JSW Bengal Steel with an investment of Rs 15,000 crore. This will be raised by the way of equity Rs 5,000 crore and debt of Rs 10,000 crore in JSW Bengal Ltd.
Talking on the sidelines of a press conference to announce the companys Q3 results, Seshagiri Rao MVS, director finance, JSW Steel said, We will invest around Rs 1,000 -1,500 crore and we are looking at raising about Rs 3,800 crore by the way of IPO for this at an appropriate time. This project will be implemented in three years and is expected to be commissioned by June 30, 2011.
The company has announced implementation of the steel plant with an annual capacity of 10 MTPA in phases in West Bengal.
The companys board, on Monday, also decided to set up a 300 MW captive power plant (CPP) at Salboni to meet the entire requirement of power. The plant will be built at an estimated cost of Rs 825 crore and will be financed by way of debt of Rs 550 crore and balance out of cash accruals. The plant will be commissioned by October 2010.
Jindal further said in the next quarter, there might be a 10% price increase due to pressure of raw material prices. There has been a 4% increase in prices this quarter, he added.