Financial Daily from THE HINDU group of publications
Friday, Dec 23, 2005
Financial Daily from THE HINDU group of publications Friday, Dec 23, 2005 |
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Corporate
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New Projects Visa Steel to tie up debt for Orissa project by month-end Our Bureau
Chennai , Dec. 22 VISA Steel Ltd, which is executing a Rs 1,400 crore integrated steel and stainless steel project in Orissa, hopes to tie up the debt for the project by the month-end. "We have a debt component of Rs 750 crore, most of which has been tied up," said Mr Vishambar Saran, Chairman, Visa Steel. The boards of directors of a couple of more banks were expected to meet shortly to approve funding for the project. The company would then decide how the balance funds would be raised. Apart from internal accruals, Visa Steel's board would decide on how much the promoters would bring in. Other options that would be explored include roping in a strategic partner or an initial public offer, he told Business Line here. The group's Switzerland headquartered holding company has 68 per cent of Visa Steel's equity and Visa International Ltd, based in Kolkata, the balance. He said the company's blast furnace and coke oven projects would start giving additional revenues by April 2006 and that would take care of funds from internal generation. Visa Steel is putting up a 0.5 million tonnes a year fully integrated steel and stainless steel plant in Kalinganagar industrial complex in Orissa. The project includes a 25 MW captive power plant using waste heat. The steel plant is expected to go on stream by 2007. Depending on the market conditions, the company will increase the plant's capacity to 1.5 million tonnes a year. Mr Saran said that Visa Steel had also got prospecting licence for an iron ore mine in Chhattisgarh. It would wait for the Orissa project to go on stream before taking a decision on the Chattisgarh project, by which time the prospecting report would also be available.
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