Visakhapatanam Steel Plant's (VSP) has decided to
expand its capacity to 6.3 million tonne by 2007-08 from 3 million tonne, which
is estimated to cost Rs.8,250 crore and foreign banks such as Citibank, HSBC,
France's Calyon Bank and few others have evinced interest in financing the
project.
Of the total project cost, close to Rs.5,750
crore would be met from internal accruals, which includes about Rs.3,000 crore
that VSP has invested in fixed deposits with various public banks. The company
proposes to raise the remaining Rs.2,500 crore through debt, both in Indian
rupees and foreign currency. The proposed tenure of the debt is likely to be
five years.