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JSW Aluminium ties up funds for Rs 4,000-cr Vizag plant

Vds Rama Raju  |  Visakhapatnam 

JSW Aluminium has achieved financial closure for its proposed Rs 4,000 crore alumina plant in Vizianagaram district. The company is setting up a 1.5 million tonne capacity alumina refinery at S Kota near Visakhapatnam.

Vice-President P Vachaspathi said while Rs 1,000 crore would be met through internal accruals as promoters equity, the remaining Rs 3,000 crore would be raised from financial institutions. “ICICI is our lead bank and has lined up 10-12 other banks for funding,” he said. The government has allotted about 960 acres to JSW for setting up the refinery. Of this, about 130 acres is government land, for which JSW paid Rs 2 lakh an acre. The assigned land comprises 830 acres and the company paid Rs 2 lakh an acre to land occupants and Rs 75,000 an acre to the state government.

JSW has also offered about Rs 2 lakh worth of company shares on each acre to the occupants and a job to each land loser family. Apart from the allotted land, JSW has acquired about 150 acres directly from farmers by paying Rs 3-5 lakh per acre, he said.

First Published: Mon, January 19 2009. 00:00 IST