Steel and mining major Abhijeet Group said it will invest Rs 55,000 crore to build steel and power plants in various parts of the country.
NEW DELHI: Steel and mining major Abhijeet Group on Wednesday said it will invest Rs 55,000 crore to build steel and power plants in various parts of the country, besides planning forays into other sectors.
"We would invest around Rs 40,000 crore to build three steel plants with production capacity of 10 million tones (MT) in Jharkhand, Maharashtra and West Bengal," Abhijeet Group Director Abhishek Jayaswal said here on Wednesday.
The proposed plant at Seraikela in Jharkhand would produce 3 MT of steel, while the one at Yavatmal, Maharashtra would have a production capacity of 2 MT, he said, adding that the plant near Asansol in West Bengal would produce 5 MT of steel.
"Funding the steel projects is not an issue as banks are keen to provide money. We would borrow from the banks and financial institutions in the debt-equity ratio of 65:35," he said, adding "we are also planning to go public by 2010 to raise additional resources."
Work for the Jharkhand plant would begin in three months, and the Group has roped in ILF&S for its West Bengal project.
Though all the proposed projects would be Greenfield ones, the company was open to acquisitions if it was an economically viable proposition, Jayaswal said.
Abhijeet Group has also signed a coal mining contract with Theiss Leighton Pvt Ltd today for developing an opencast mine at North Karanpur in Jharkhand at a cost of Rs 4,500 crore, with a production capacity of 6.75 MT per annum.
The coal extracted would be used to fire the Group's proposed power project in Jharkhand, Jayaswal said.
Jayaswal said the Group would invest Rs 15,000 crore to set up power plants capable of producing 5,000 Megawatts in Biharm Maharashtra, Jharkhand and West Bengal.
"We envisage an investment of about Rs 15,000 crore for building steel plants in these states. Once completed these coal-fired plants would produce 5,000 MW in the next eight years," Jayaswal said.
The Group has started construction work for the 1,200 MW power project in Jharkhand besides commencing work for the 4,000 MW Mihan project near Nagpur, he added.
"We are currently concentrating on ensuring adequate coal linkage for these plants. We would be partnering with IDFC and ILF&S in constructing these plants," he pointed out.
The group was also planning to make major forays in the road and other sectors to expand its area of operations, the Abhijeet Group's Director said.
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