28th January, 2008
JSW Steel to set up 300 MW captive power plant
JSW Steel Ltd has announced that the Board of Directors of the Company at its meeting held on January 28, 2008, inter alia, were taken the decisions to set up 300 MW Captive Power Plant and 6 MTPA Steel Plant in West Bengal.To meet the entire requirement of power captively at 10 MTPA capacity, the Board has approved the setting up of a new 300 MW captive power plant at an estimated cost of Rs 825 Crores to be financed by way of debt of Rs 550 Crores and balance out of cash accruals to be commissioned by October 2010.Setting up of a 6 MTPA Steel Plant in the State of West Bengal and investment in the Equity Capital of JSW Bengal Steel Ltd: Following the execution of the Development Agreement to set up a Steel plant with an annual capacity of 10 MTPA in phases in the State of West Bengal, the Board has approved to set a 6 MTPA integrated steel plant upto slab stage through its subsidiary, JSW Bengal Steel Ltd. The project cost is estimated at Rs 15,000 Crores to be raised by way of equity of Rs 5,000 Crores and debt of Rs 10,000 Crores in JSW Bengal Steel Ltd.The Company will invest around Rs 1000-1500 Crores and the balance amount will be raised at an appropriate time by way of an Initial Public Offering. This project will be implemented within 3 years and is expected to be commissioned by March 31, 2011.
Source: Equity Bulls