Nava Bharat Ferro Alloys has outlined a major expansion and diversification programme costing Rs.350 crore, which would be part-financed through a preferential offer of equity shares.

The expansion plan is related to areas like sugar, cogeneration, bio-diesel and commercial power generation. The diversification involves entering into areas like urban transportation, special economic zones and national highway development.

The company, which is looking at venturing into infrastructure in a big way through the SPV route, has bid for the metro rail project (MRTS) in Hyderabad, a national highway project in Madhya Pradesh and an industry-specific special economic zone (SEZ) project.

The outline of the investment programme involves development of:

• An integrated sugar plant of 2,500 tccpd, a distillery of 40 klpd and a 25 MW cogeneration plant at Shanti Ashram near the existing sugar factory (Samalkot, East Godavari district, Andhra Pradesh). Total investment: Rs.150 crore.
• A greenfield coal-based power project of 60 MW costing Rs.190 crore in Orissa

Impact: Total sugar capacity would reach 6,500 tccpd while power capacity would touch nearly 200 MW, on implementation the above initiatives.

Diversification: The company recently obtained Andhra Pradesh Government's approval for allocation of 250 acres of land in favour of its subsidiary company — Brahmani Infratech Pvt Ltd — for the development of an SEZ for IT and ITES.

NBFAL, through a newly promoted company --  Malaxmi NBFA Ventures Pvt Ltd -- has also bid for the metro rail project in Hyderabad and a national highway project in Madhya Pradesh. [see related news]

The company has proposed to change its name to Nava Bharat Ventures, subject to necessary approvals.

Also See:

Malaxmi bags highway contract (19-Apr-06)