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| Adhunik arms to invest Rs 3,350 cr in 2 yrs |
| BS Reporter / Kolkata Sep 12, 2009, 00:42 IST |
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Adhunik Metaliks’ subsidiaries, Orissa Manganese & Minerals Ltd and Adhunik Power & Natural Resources, will be investing Rs 3,350 crore in mining and power over the next two years.
Orissa Manganese, a 100 per cent subsidiary is planning an iron ore beneficiation and pelletisation plant in Jharkhand, apart from a 30MW power plant and 40,000 tonnes of ferro alloys. The total investment in the project would be Rs 700 crore, said Manoj K Agarwal, managing director, Adhunik Metaliks. The iron ore beneficiation and pelletisation plant would be in Jharkhand while the power plant and the ferro alloys plant would be set up in Orissa.
Agarwal said, around 1,00,000 tonnes of iron ore was being mined a month, which would go up to 1.5-1.7 million tonnes by the year-end and three million tonnes, next year.
Adhunik acquired Orissa Manganese & Minerals about two years back. Total iron ore reserves in the mines were around 50 million tonnes. The subsidiary also has six manganese mines, of which one was a large mine.
For the Rs 700 crore investment, Adhunik had tied up debts of Rs 400 crore and the balance would be raised through a mix of internal accruals, initial public offering or private equity, said Agarwal.
Adhunik Power, on the other hand, had lined up a 540MW power plant at an investment of Rs 2,650 crore. The company had tied up debts of Rs 200 crore for the project and was in advance stage of talks with private equity players for Rs 450 crore, said Agarwal. Internal equity would be to the tune of Rs 200 crore.
Agarwal said, the PE deal would materialize in a month’s time. At present, Adhunik Metaliks’ debts was to the tune of Rs 1,200 crore and the company would bring it down to less than Rs 1,000 crore.
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