JSW Steel may sell as much as 40 per cent in its upcoming 10-million tonne
steel unit in West Bengal to its overseas partner, Japan based JFE.
According to sources, JFE could invest close to $1 billion (approx Rs 4,600
crore) in buying up to 40 per cent stake in JSW Bengal Steel. These funds are
likely to be used to build the steel plant which is estimated to cost about Rs
35,000 crore.
The company expects the construction of Bengal project to start soon since it
has already acquired 4,500 acre at Salboni in Paschim Medinipur district.
Currently, JSW Steel holds 89 per cent stake in the subsidiary, while the
rest is held by the West Bengal Government. The company had delayed the
construction of the plant due to unavailability of funds last year because of
credit crisis.
Also See:
JSW to
tie-up with JFE Steel of Japan (20-Nov-09)