JSL, formerly known as Jindal Stainless, plans to raise Rs 500 crore through various routes, including a rights issue or issuance of global depository receipts (GDRs), to fund its upcoming Rs 5,700 crore stainless steel project in Orissa. The company achieved financial closure for the project last year but shortfall in liquidity has compelled the firm to raise more funds.

Though the steel plant was scheduled to get commissioned by mid-2011, it has got delayed by a year due to economic slowdown and bleak market conditions. Once commissioned, the plant will produce 8 lakh tpa of stainless steel.

The company has asked overseas equipment suppliers to defer the delivery of the equipment by at least eight months on account of delay in the project. The construction work is underway and the plant will become operational only by June 2012. A 250 MW power plant has also been set up at the plant-site to meet captive power requirements.

Also See:

JSL puts overseas projects on hold (05-Jan-09)

Related Links:
Project profile