India in focus for steel firms
Monday, 25 January 2010
MUMBAI, Jan 24 (Commodity Online): Steel and metal producers have increased their activities in India with several new projects being announced in a span of 2 months.
Recently, JSW Steel has cleared the formation of a special purpose vehicle (SPV) by the company's subsidiary JSW Bengal Steel Ltd jointly with JSW Energy Ltd (JSWEL) for setting up a 1,600-MW power plant in West Bengal.
The company said it would use coal from the Icchapur mines for this thermal power project which would come up in two units of 800MW each at a cost of Rs 96.80 billion, comprising Rs 76.80 billion for the power plant and Rs 20.00 billion for the mines development.
The units are targeted to be completed by March 2015 with the first unit coming up by March 2014. The project cost is proposed to be funded on a debt-equity ratio of 3:1. The total equity will be Rs 24.20 billion with a debt component of Rs 72.60 billion. With JSWBSL holding 26 per cent equity the group would have to raise Rs 6.29 billion.
In another development, UK-based Vedanta Resources Plc and India's Larsen and Toubro (L&T) are planning to set up a mega joint venture steel projects in Orissa.
Chairman of Vedanta group Anil Agarwal called on Chief Minister Naveen Patnaik to update him about the status of ongoing initiatives of Vedanta for the people of Orissa.
The first unit of a 2400MW power plant at Jharsuguda in Orissa would be commissioned by summer. The Vedanta group also discussed about the Jharsuguda (project), five hundred thousand tonnes of aluminium is under production, 1.5 million tonne under construction.
Recently, JSW Steel has cleared the formation of a special purpose vehicle (SPV) by the company's subsidiary JSW Bengal Steel Ltd jointly with JSW Energy Ltd (JSWEL) for setting up a 1,600-MW power plant in West Bengal.
The company said it would use coal from the Icchapur mines for this thermal power project which would come up in two units of 800MW each at a cost of Rs 96.80 billion, comprising Rs 76.80 billion for the power plant and Rs 20.00 billion for the mines development.
The units are targeted to be completed by March 2015 with the first unit coming up by March 2014. The project cost is proposed to be funded on a debt-equity ratio of 3:1. The total equity will be Rs 24.20 billion with a debt component of Rs 72.60 billion. With JSWBSL holding 26 per cent equity the group would have to raise Rs 6.29 billion.
In another development, UK-based Vedanta Resources Plc and India's Larsen and Toubro (L&T) are planning to set up a mega joint venture steel projects in Orissa.
Chairman of Vedanta group Anil Agarwal called on Chief Minister Naveen Patnaik to update him about the status of ongoing initiatives of Vedanta for the people of Orissa.
The first unit of a 2400MW power plant at Jharsuguda in Orissa would be commissioned by summer. The Vedanta group also discussed about the Jharsuguda (project), five hundred thousand tonnes of aluminium is under production, 1.5 million tonne under construction.