Date:31/10/2007 URL: http://www.thehindubusinessline.com/2007/10/31/stories/2007103151633000.htm

Back Ispat to invest Rs 1,500 cr in Madhya Pradesh

Phalguna Jandhyala

New Delhi, Oct. 30 Ispat Industries Ltd has announced that it would be investing Rs 1,500 crore in Madhya Pradesh on three new projects.

“The company has signed a memorandum of understanding with Madhya Pradesh Trade and Investment Facilitation Corporation Ltd, a wholly owned subsidiary of the Madhya Pradesh Government, recently,” sources close to the development told Business Line.

Ispat Industries plans to set up a one million tonne (mt) coke oven battery plant, a coal washery and beneficiation plant of 1.05 mt and also a 150-MW power plant for captive consumption. “The company intends to make investments through a special purpose vehicle for setting up the facilities in the State. However, the implementation of the MoU would be taken up only after obtaining all the requisite approvals,” the official said.

Keen to speed-up

He added that the company has already applied for the coal block and the Government is keen to speed-up the process.

“Currently, the company imports coking coal. But once these plants come up it would reduce the dependence on the imports which would in turn help bring down the production costs of the company,” he said. The project is also part of the earlier expansion plans announced by the company. Ispat Industries is currently expanding its steel capacity to five mt from three million tonnes.

It had signed a separate MoU in this regard with the Maharashtra Government and will be investing Rs 2,000 crore on the expansion of plant located in Dolvi.

It is also looking at a 4.5 mt pellatisation plant in Visakhapatnam for which the investment is around Rs 900 core.

The company has said that a special purpose vehicle would be set up for the project and Ispat would be one of the sponsors.