Bangalore, Jan. 9
Surya Vijayanagar Steels and Power Ltd, a subsidiary of Surya Roshni, plans to invest Rs 20,000 crore to establish a five million tonnes per annum (mtpa) integrated steel plant, along with a 500 MW captive power plant in Bagalkot district in north Karnataka.
The group, which is in the steel and lighting business for the last 35 years, would set up the plant on 4,000 acres in Bagalkot district, which has several historical monuments. The company would identify the land and it would be acquired by the Karnataka Industrial Areas Development Board (KIADB), a State government undertaking. The exact location has not yet been finalised, according to officials in the Industries Department.
Jobs for 10,000
The project, which was cleared by the State High-Level Clearance Committee (SHLCC) chaired by the Chief Minister, Mr B.S. Yeddyurappa, would provide employment to 10,000 persons. The company has a turnover of Rs 1,700 crore. It will invest Rs 4,120 crore on land and building, Rs 13,880 crore on plant and machinery, Rs 1,000 crore on working capital margin and Rs 1,000 crore as contingency.
The company, which has applied for the mining lease, would mobilise Rs 6,700 crore from the promoters' contribution and raise term loans of Rs 13,300 crore.
The proposed steel plant would get 15 MGD water from the Ghatapraba and Krishna rivers subject to the approval of the Water Resources Department. The SHLCC has advised the promoters to adopt rain harvesting and to adopt water conservation facilities.
Till the establishment of the 500 MW power plant by the company, the Gulbarga Electricity Supply Company (GESCOM) would supply 90 MW of power. The officials in the Industries Department said that based on the request of the company, the extra concessions could be considered.