Essar Steel has planned to invest around Rs.700
crore towards expanding the capacity of its hot rolled coils and sponge iron
manufacturing facilities.
The company has planned to step up HR coil
production to 3.2 million tpa, while pellets and iron ore capacity would be increased
to 3 million tpa. Essar also plans to start captive mining of iron ore in
Chhattisgarh and Orissa, once approval from the state governments is in place.
The company's expansion plans are predicated upon
approval from lending financial institutions. As per the corporate debt
restructuring plan, Essar had committed not to undertake fresh capital
investment for a fixed period of time.