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Our Bureau

The company proposes to tap financial institutions to raise a debt of Rs 1,375 crore.

Bangalore , June 28

MSPL, a Hospet-based mining and iron ore exports company, has firmed up its plans to implement an integrated steel plant at Koppal following the recent approval by the Karnataka Government.

The project, with an estimated investment of Rs 2,296.26 crore, will consist of plants to manufacture 1.2. mt of iron ore pellet and 1.05 mt of steel per annum. MSPL would also be producing 125 MW of power from waste heat from the plant, which would be utilised for captive use.

MSPL plans to scale up its capacity to 5 mt in five years.

Mr Abheraj Baldota, Chairman and Managing Director, Baldota Group, said that the work on the project would start in about two months.

MSPL has the advantage of ready supply of ore from its own mines in the Hospet-Bellary belt, which should help in keeping the overall production cost low, Mr Baldota said.

Mr Baldota told Business Line that MSPL proposes to tap financial institutions to raise a debt of Rs 1,375 crore, while the promoters would pool in with a contribution of Rs 687 crore of the total proposed equity of Rs 966 crore.

"Our focus would be the domestic market," Mr Baldota said, adding that the boom in the real estate and potential of infrastructure sector should provide a good market for its long products.

MSPL would also be cashing in on the growing demand for special steel in various sectors such as automotive and white goods industry, Mr Baldota said.

As it proposes to try Brazilian technology of Technorade, which eliminates the use of coking coal, MSPL does not envisage any problem in maintaining its capacity utilisation as faced by some plants due to dependence on import of feedstock.

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