Tata Steel, on 13 March 2006, announced the signing of two external commercial borrowing agreements aggregating 61.42 million Euros (around Rs.235 crore or $73 million.)

Proceeds would be used to part-finance the import component of the Blast Furnace-H and the Sinter Plant-No.4 segments of the ongoing capacity expansion at the Jamshedpur works in Jharkhand. Steel capacity at the Jamshedpur plant is being raised by 2.4 million tpa from the existing 5 million tpa.

It may be recalled that in August 2005, Larsen & Toubro and its international consortium partners bagged two major EPC contracts valued at Rs.1,550 crore for Tata Steel's 2.4 million tpa steel capacity expansion project in Jamshedpur. L&T's share in these projects will be Rs.1,000 crore.

The above borrowing programme took Tata Steel's total external commercial borrowings during 2005-06 to over $970 million. Earlier in the year, Tata Steel had raised $400 million through a loan from International Finance Corporation, $500 million through a syndicated loan.

Also See:

L&T, partners bag Rs.1,500 crore contract from Tata Steel (05-Aug-05)

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