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| JSW Steel to raise loan limit by Rs 10,000 cr |
| Ishita Ayan Dutt / Kolkata Jun 04, 2010, 00:42 IST |
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Sajjan Jindal-controlled JSW Steel is raising its borrowing limit by Rs 10,000 crore, to Rs 25,000 crore, to help fund its capital expenditure, including proposed investments in Indian and overseas subsidiaries.
A resolution to this effect will be placed before shareholders at the company’s coming annual general meeting. In December 2007, the borrowing limit was raised to Rs 15,000 crore.
“The move is made keeping the future financial requirements of the company (in mind),” said Seshagiri Rao, joint managing director and group chief financial officer.
Future investments would be in JSW Steel or subsidiaries. Among the coming projects, JSW Steel would commission its expansion from seven to 10 million tonnes at the Vijaynagar Works (Bellary, Karnataka) by March 2011.
 “Work on the Bengal project will also start this year,” said Rao. Boundary wall work at the Salboni site was in progress and the 10-million tonne unit would be implemented in phases. The first phase of four million tonnes of steel making capacity would cost about Rs 15,000 crore.
JSW Steel signed a strategic collaboration agreement with Japan’s JFE Steel on a host of issues, which included building and operating the Bengal project. There were some discussions that JFE could pick up stake in the Bengal project.
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