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Electrosteel Steels Ltd (ESL) on Friday said it expected to achieve financial closure for its integrated greenfield steel project by end-November.
The Rs10,000-crore, 2.51 million tonnes-a-year project is coming up at Bokaro in Jharkhand.
ESL is expected to close the transaction of this long-term project funding of Rs 2,300 crore through syndicated borrowings. State Bank of India is the lead bank and SBI Capital Markets Ltd is the financial advisor for the fund raising.
Listed ESL, the associate company of Electrosteel Castings Ltd, has also “arranged and invested” the balance funding required though equity of Rs 412 crore.
The project, which is nearing official commissioning, will be the first integrated manufacturing facility in the country which will produce steel and also value added products such as ductile iron (DI) pipes.
Slated to be amongst the top five largest single location plants in India, the company said it would have a product basket comprising other long products such as wire rods, TMT bars and billets.
“Having adequate raw material linkages and strategic location supported by leading Chinese consultation agency for supply of technology and engineering, the plant has ensured a lower cost of project than that of the usual industry figure,” the company note said. The plant has already commenced production of TMT bars, pig iron, DI pipes, Sinter and coking coal.
> Jayanta.mallick@thehindu.co.in
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