Jayaswal Neco ties up debt for Rs3,300-crore expansion

Neco Group’s flagship company, Jayaswal Neco Industries, has tied up debt for its Rs3,267-crore expansion in steel, mining and power projects.

Of the total project cost of Rs3,267 crore, the debt component is Rs2,143.50 crore and the rest Rs1,123.50 crore is the equity part. ICICI Bank, State Bank of Travancore, UCO Bank, Union Bank of India and United Bank of India have lend money to the company for expansion.

Neco said, “The company has commenced planning and implementation of its expansion of 0.1 million tonne per annum (mtpa) coke oven plant, expansion of its steel melt shop by 0.45 mtpa and rolling mill by 0.35 mtpa, modernisation of its existing wire rod mill, setting up of 0.3 mtpa sponge iron plant, setting up of 62 Mw captive power plants, development of its non-coking coal mines along with 3 mtpa coal washery and development of its iron ore mines in Chhattisgarh and development of its coking coal mines with 1 mtpa coal washery in Jharkhand.”

After expansion, the company would have 1.3 mtpa of iron making capacity, 105 Mw captive power plants, 1.1 mtpa of finished steel making capacity, 4 mtpa of coal washeries, 0.2 mtpa of coke oven plants, 0.8 mtpa sinter plants and 0.1 mtpa of ferrous casting capacities.

Neco said, “Implementation of these projects would help us achieve total captive low ash metallurgical coke making capacity, self-sufficiency in entire captive power requirements, monetisation of benefits of non-coking coal mines by setting up additional sponge iron plants and of coking coal and iron ore mines by developing them for usage in its integrated steel plant at Raipur.”