MSPL, a Karnataka-based mining and iron ore exports company,
has firmed up its plans to implement an integrated steel plant in Koppal
district of Karnataka. The state government approved the project earlier this
month.
The project, with an estimated
investment of Rs.2,296 crore, will comprise a 1.2. million tpa iron ore
pelletization unit and a 1.05 million tpa steel plant. The project also
involves setting up of a 125 MW captive power plant. The steel plant’s capacity
would be scaled to 5 million tpa over five years. Construction work is likely
to begin by September 2005.
MSPL will source ore from its own
mines in the Hospet-Bellary belt. The company has proposed to raise Rs.1,375
crore as term loans from financial institutions. The promoters would contribute
Rs.687 crore out of the total equity component of Rs.966 crore.
The project might use Technorade
Technology from Brazil, which eliminates the use of coking coal, it is learnt.
Also See:
Karnataka clears projects worth
Rs.14,000 crore (08-Jun-05)