Money & Banking

Indian Bank signs pact with Kamineni Steel for Rs 1,248-cr loan

Our Bureau Hyderabad | Updated on November 10, 2017

Mr T. M. Bhasin ( right) , Chairman and Managing Director of Indian Bank, and Mr Kamineni Suryanarayana, Chairman and Managing Director of Kamineni Steel and Power India Pvt Ltd, in Hyderabad on Friday. Photo: P.V. Sivakumar



Indian Bank has inked a loan syndication pact for Rs 1,248 crore with Kamineni Steel & Power Indian Pvt Ltd for a steel billets manufacturing plant.

Besides Indian Bank, nine other public sector banks are participating in the loan-syndication for the financial closure of the proposed plant, Mr T.M. Bhasin, Chairman and Managing Director of the Bank, told newspersons after singing the pact here on Friday.

“We ourselves are lending Rs 300 crore for the proposed plant. We already have Rs 1,000-crore exposure to the Hyderabad-based Kamineni Group,'' Mr Bhasin said.

The total cost of project, which is coming up at Narketpalli in Nalgonda district, is Rs 1,534 crore out of which Rs 286 crore would be the equity component.

PIPE LINE

Indian Bank was keen on loan syndication, the CMD said adding: “So far, we have closed 14 syndication deals involving Rs 7,000 crore in which Indian Bank funded up to 25 per cent.''

The bank had earned Rs 15 crore as fee for the deals.

Another seven loan-syndication deals are in the pipeline for Rs 3,000 crore. “These deals may be finalised by March,'' Mr Bhasin said.

HYDERABAD METRO

“We will also be financing Hyderabad Metro Rail Project to be implemented by L&T. The details are being worked out,'' he added.

The loan could be in the tune of Rs 500-Rs 800 crore.

Going forward the bank would focus on non-fund-based income, Mr Bhasin said.

PROJECT

Mr Kamineni Suryanarayna, Chairman of United Seamless Tubular Pvt Ltd, said the proposed steel billet plant would be operational by June 2013.

“We are setting it up for captive consumption of United Seamless Tubulaar Pvt Ltd which is supplying billets to Oil Country Tubular Ltd. The capacity would be 3.60 lakh tonnes per annum besides 220 MW captive power plant,'' he said.

At present, the price of steel billets is in the range of $750-800 a tonne.

The fuel-supply agreements for the proposed plant were in progress, he added.

According to Mr K.G. Joshi, Director, Oil Country Tubular Ltd, his company would invest about Rs 50-75 crore in the proposed plant.

Published on February 04, 2011

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