Bhushan Power to invest Rs 1,000 cr in new steel plant

Leading steel maker Bhushan Power and Steel Ltd (BPSL) today said it will set up a cold rolling mill complex with a capacity of three lakh tonnes in the western region of the country at an initial investment of Rs 800-1,000 crore.

"We will be setting up a cold rolling mill complex that will have a production capacity of three lakh tonnes per annum of hot roll coils, either in Gujarat or Maharashtra. We are in talks with both state governments for acquiring land. As soon as we get the land, we will start construction. The initial investment will be around Rs 800-1,000 crore," BPSL Chairman and Managing Director Sanjay Singhal told PTI here.

The plant will be commissioned by 2012, he said, adding that the final product (hot roll coils) from the plant would be supplied to automotive and construction industries.

The complex, to be set up over 100 acres, will house a cold rolling mill, a pickling line, a galvanising line and other equipment, Singhal said.

The steel major has signed a Memorandum of Understanding (MoU) with Belgium-based engineering group CMI FPE for design and supply.

CMI FPE has also designed BPSL's cold rolling mill unit in Orissa's Jharsuguda district, which has a capacity of 1.5 million tonnes per annum.

Singhal said the company would be expanding the capacity of the Orissa plant to 2.5 million tonnes by March next at a further investment of Rs 3,000 crore.

BPSL is also mulling an initial public offering (IPO) next year, Singhal said.

"We are a profit-making company with an annual turnover of Rs 4,800 crore and plan to tap the capital market through an IPO," Singhal said.

He, however, refused to divulge any further details. He also refused to comment on recent reports of steel giant ArcelorMittal planning to buy a stake in BPSL.