New Delhi based Prakash Industries (PIL) has drawn out an investment plan of Rs 3,300 crore for expansion and diversification to be implemented over a period of next five years.

PIL intends to invest Rs 2,500 crore to take the overall captive power generation capacity to 775 MW by 2015 to cater to the steel capacity expansion. Currently, it has a generation capacity of 100 MW, of which 75 MW is coal based and the rest is generated through waste heat recovery route.

The Phase I of expansion is expected to be completed by December 2010, which will add an additional 125 MW capacity. Following this, PIL plans to expand capacity every year, adding 150 MW in 2012, 150 MW in 2013, 125 MW in 2014 and finally 125 MW in 2015.

This apart, PIL plans to augment its steel production capacity from six lakh tpa to one million tpa in two phases by 2011 at an estimated investment of Rs 100 crore. Also, a sum of Rs 550 crore is likely to be invested to ramp up sponge iron capacity from 6 lakh tpa to 1.2 million tpa by 2013.

The company has already raised $50 million (approx Rs 225 crore) and the remaining could also be raised soon depending upon the expansion projects. Further funds could be raised if the company plans to pre-pone the expansion to about 2014 from the current 2015.

Apart from its captive coal block at Chotia in Chhattisgarh, the company will start mining at its iron ore mine at Kawardha in the state from June 2010. Its other iron or mine at Sirkaguttu, Orissa, is also expected to begin functioning in June 2010. PIL is likely to invest Rs 150 crore in mine development.

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Prakash Industries plans investment (12-Nov-09)