Ispat lines up Rs 2,600cr capex for 2 yrs

Domestic steel producer Ispat Industries today said it has earmarked a capex of about Rs 2,600 crore for two years in major projects.

"New projects were hit for a while, but now progressing well. The global financial meltdown delayed the process, but we have been able to overcome it. In a few projects we are very close to financial closing," Ispat Chairman Pramod Mittal said here today on the sidelines of company's AGM.

The total capex in the next two years would be around Rs 2,600 crore involving major projects like coke oven plant, pellet plant, power and some outgo for other projects, the company said.

"The financial closing for the 1-million tonne coke oven plant will (be) achieved by November. SBI Caps is syndicating the debt arrangement. The project will begin in the next 20-21 months since then," Ispat ED Finance Anil Sureka said.

The coke oven plant would be executed in a 26:74 joint venture with steel trading major, Stemcor, he added.

The 2-million tonne pelletisation plant would come up in Dolvi instead of Vizag on the same model of the coke oven plant. The project would be complete in 2012. Also, the 110 MW proposed power plant was likely to be commissioned from October 2010 and April 2011 in two phases.

Mittal said initial activities for overseas arms for iron -ore and coal in Brazil, Colombia and Mozambique had been undertaken. The company has taken stake of between 33 and 40 per cent in local mines.