Tata Electric Forced To Reduce Generation

The M L Mittal-promoted Ispat Profiles Ltd has tied up loans of around Rs 250 crore from banks and financial institutions (FIs) to service its capital requirements for expanding its manufacturing line as well as to meet the working capital requirements of the company.

The company has secured loans up to Rs 122.09 crore from banks and FIs for servicing its capital requirements and up to

Rs 126.85 crore from banks to meet its working capital requirements.

To meet the capital requirements of the expansion of manufacturing line, the company approached financial institutions and banks, namely, Industrial Finance Corporation of India, Industrial Development Bank of India, ICICI , State Bank of India (SBI), Bank of India (BoI), Indian Bank and others.

 

The institutions and banks have agreed to advance finance against security of creation of first charge by way of registered mortgage on the company's entire fixed assets either present or future, which may be acquired either out of the loan amount from the above institutions or banks.

For meeting working capital requirements, the company has secured a loan of Rs 38.50 crore from SBI, Rs 34.25 crore from BoI, Rs 12.08 crore from State Bank of Bikaner & Jaipur, Rs 10.70 crore from State Bank of Paitala, Rs 12.80 crore from State Bank of Hyderabad, Rs 12.80 crore from Indian Bank and Rs 5 crore from Dena Bank.

According to Ispat Profiles' annual report for 1998-99, the company has evolved strategies to face the recessionary conditions which it feels are likely to continue for some time.

The company would continue to lay thrust on optimum utilisation of plant capacity.