Tuesday, 28 January 2014

Mideast Integrated Steels to raise capacity to 3.5 million tonnes

New Indian Express reported that the Mideast Integrated Steels Limited has planned to raise external commercial borrowing to the tune of USD 500 million to fund the brown field expansion of the steel plant.

Ms Rita Singh CMD of the company said that “The borrowing process will start in next financial year for raising the plant’s capacity from 1.2 million tonne per annum to 3.5 million tonne per annum in 2 phases.”

She said that “The company is hopeful of good rating by the credit rating agency which would enable it to raise this kind of funding, MISL enjoys debt free status from banking and financial institutions. The construction will start the moment environmental clearance for the expansion is granted by the Ministry of Environment and Forests. The State Government has already recommended for grant of environment clearance after completion of public hearing at Kalinga Nagar.”

Ms Singh said that “The flagship company of Mesco Steel Group has also identified some steel companies in Odisha as acquisition targets. These companies are in distress due to mismatch of facilities, raw material supply constraints, management issues and high debts. Such an acquisition will be done only if there is a strong case for creating value for the company.”

Since forest and environment clearances for industrial projects, in general, are facing a delay, Mesco Steel has also decided to focus on acquiring mineral assets overseas. Ms Singh said that several proposals mostly gold, copper, manganese and coking coal are under consideration.

Sandip Ginodia , Director
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