Kolkata, May 15 (Inditop.com) Ispat Industries has planned capital expenditure of Rs.1,700 crore for mining, a power plant and a coke oven plant in Maharashtra, a top company official said here Saturday.
Of the Rs.1,700 crore, Rs.120 crore would go for mining (iron ore, coal, limestone, dolomite), Rs.1,100 for the coke oven plant, Rs.490 crore for a 110 MW power plant.
The company manufactures sponge iron, hot and cold rolled galvanised steel coils, and galvanised and colour-coated steel sheets.
“By 2012, Ispat will be able to meet 40 percent of its power requirement, 50 percent iron ore requirement and 100 percent coke requirement,” Anil Sureka, executive director, finance, told reporters on the sidelines of the company’s extraordinary general meeting.
“The (one million tonne per annum) coke oven plant is expected to be completed in March 2012. Ispat has 26 percent in this project,” he said.
Ispat has tied up with a foreign company for this project, but Sureka declined to mention the name as the firm is bound by a confidentiality agreement.
In the power project, Ispat has majority stake (85 percent). Work has started for this project and “most of the amount has been spent”, he said.
The coke oven and iron ore pellet plants (two million tonne per annum) are coming up in Dolvi in Maharashtra.
About the iron ore pellet plant, he said: “We are working on this project. We haven’t decided anything yet”.
He said iron ore mining in Damkodwadvi in Maharashtra is expected to start next year. About coal mining, he said it would take some time.
“Work for limestone and dolomite mining in Maharashtra would start very soon,” he said.
Sureka said the company plans to close its Qualified Institutional Placement (QIP) issue within a month. It plans to raise less than Rs.500 crore from this.
