Kalyani Gerdau Steels Ltd, a joint venture between Kalyani group (which owns Bharat Forge Ltd) and Brazilian steel company Gerdau, plans to raise up to $30 million (around Rs 133 crore) from the International Finance Corporation (IFC).
The proposed funding, now under IFC's consideration, would be used to restore and modernise KGSL's steel manufacturing facility at Tadipatri in Andhra Pradesh. In 2010, the company had raised $25 million (Rs 111 crore) from IFC to partly fund the restoration and modernisation of its steel manufacturing facility.
The company proposes to further enhance the manufacturing facility by adding a coke oven plant and a 12MW waste heat recovery based power plant.
The total cost of the project is expected to be $46 million (Rs 204 crore). IFC is considering an investment in the form of an A loan for its own account of approximately $30 million.
Gerdau, the majority partner in the JV, has a crude steel production capacity of 25 mpta and rolling capacity of 22 mn tonnes, spread over 14 countries. Gerdau is listed on the Sao Paolo, Madrid and New York Stock Exchanges.