Saturday, 15 Oct 2011
ET reported that perturbed over delays in getting necessary approvals and land acquisition issues, global steel giant ArcelorMittal is understood to have put its proposed 12 million tonnes steel plant in Orissa on back burner.
According to company sources, no progress has been made by the company in the state in last one and a half years and at the moment the company is focusing more on its plans for setting up steel units in Karnataka and Jharkhand.
Only 8 gram sabhas meetings out of 15 required for land acquisition in Orissa has been conducted till first half of 2010 and the status remains the same, sources said.
In 2006, ArcelorMittal had signed an MoU with the Orissa government to set up a 12 million tonnes per annum steel plant in four phases at Keonjhar, entailing an investment of INR 50,000 crore. The MoU is due for renewal in December 2011.
When asked whether project in Orissa was stalled, the company's India spokesperson declined to comment.
(sourced from ET)
Showing posts with label Orissa steel plant. Show all posts
Showing posts with label Orissa steel plant. Show all posts
Saturday, October 15, 2011
Monday, February 21, 2011
Tata Steel sees Orissa plant output by March 2013
Mon Feb 21, 2011 7:15am GMT
* Likely to invest $3.77 bln in the plant's first phase
* Initial 3 mln T capacity to be doubled later
* India currently accounts for 25 pct of total capacity (Adds details)
NEW DELHI, Feb 21 (Reuters) - India's Tata Steel (TISC.BO: Quote), the world's seventh-largest steelmaker by output, expects to start production from a new Orissa plant by end-March 2013, Managing Director Hemant Nerurkar said on Monday.
The plant at Kalinganagar in eastern India will have initial capacity of 3 million tonnes, which would eventually be doubled.
Tata Steel signed the initial memorandum for the plant with the local government in November 2004 and preliminary work on land acquisition and resettlement of locals is still under way, showed the company's website here p. Nerurkar said the company was likely to invest 170 billion rupees ($3.77 billion) in the plant's first phase.
Tata Steel acquired Corus, Europe's second-largest steelmaker, in 2007 for $13 billion, in the largest overseas acquisition made by an Indian company so far.
European operations account for two-thirds of Tata Steel's global capacity of about 30 million tonnes, while current Indian operations contribute a quarter.
It also has units in Thailand and Singapore.
The steel industry globally has been caught in a margin squeeze since mid-2010, when raw material costs began to steadily rise but steel prices dropped as activity slowed as recession hit developed economies.
While demand is improving from the auto sector, the other key market, construction, is struggling to pull clear of the crisis.
Tata Steel said last week its margins would remain under pressure because of increased raw materials costs as it reported quarterly net profit more than doubled, driven by demand in Europe and growth in its Indian operations. [ID:nSGE71F00F]
Nerurkar said steel prices were likely to be volatile.
He also said the company would like to retain its stake in Australia-based Riversdale Mining Ltd. ($1=45.1 Indian rupees) (Reporting by Mayank Bhardwaj and Ratnajyoti Dutta; writing by Jo Winterbottom; editing by Malini Menon, sourced:Thomson Reuters)
The plant at Kalinganagar in eastern India will have initial capacity of 3 million tonnes, which would eventually be doubled.
Tata Steel signed the initial memorandum for the plant with the local government in November 2004 and preliminary work on land acquisition and resettlement of locals is still under way, showed the company's website here p. Nerurkar said the company was likely to invest 170 billion rupees ($3.77 billion) in the plant's first phase.
Tata Steel acquired Corus, Europe's second-largest steelmaker, in 2007 for $13 billion, in the largest overseas acquisition made by an Indian company so far.
European operations account for two-thirds of Tata Steel's global capacity of about 30 million tonnes, while current Indian operations contribute a quarter.
It also has units in Thailand and Singapore.
The steel industry globally has been caught in a margin squeeze since mid-2010, when raw material costs began to steadily rise but steel prices dropped as activity slowed as recession hit developed economies.
While demand is improving from the auto sector, the other key market, construction, is struggling to pull clear of the crisis.
Tata Steel said last week its margins would remain under pressure because of increased raw materials costs as it reported quarterly net profit more than doubled, driven by demand in Europe and growth in its Indian operations. [ID:nSGE71F00F]
Nerurkar said steel prices were likely to be volatile.
He also said the company would like to retain its stake in Australia-based Riversdale Mining Ltd. ($1=45.1 Indian rupees) (Reporting by Mayank Bhardwaj and Ratnajyoti Dutta; writing by Jo Winterbottom; editing by Malini Menon, sourced:Thomson Reuters)
Friday, February 18, 2011
TATA Steel to raise INR 3000 crore via NCD
Friday, 18 Feb 2011
TATA Steel, after its INR 3,477 crore follow on public offer, has secured commitments from investors to raise another INR 3,000 crore through a private placement of non convertible debentures in two tranches.
A part of this secured commitment had been raised in January for the Jamshedpur project and will continue as and when the need arises.
Mr Koushik Chatterjee Group CFO of TATA Steel told Business Standard that “The interest rate for this INR 3,000 crore NCD will be a ballpark of 9 to 9.75% and it will mature after 20 years.”
He said that “The idea is to move from high cost debt to a low cost one and with a better tenure. The company is now focusing on loan products that would give it a flexibility to repay over a long period of time, preferably 20 years, like in the case of this recent NCD.”
On a further fund raising of USD 500 million through a perpetual bond issue, which ideally is a very long term bond with interest payments that go on forever. Mr Chatterjee said that “Nothing is on the table right now.”
However, sources said that the company is looking to raise this sum through a long term bond placement.
Mr Koushik Chatterjee said that the company may launch the issue in the next three to six months.
Sources said the company was looking to raise the money from international market and will bear an interest rate of around 9%.
Mr Chatterjee made it clear that the INR 3,000 crore NCD will be used entirely for the capital expenditure of Jamshedpur and Orissa. He added that “Immediate focus is Jamshedpur expansion and commissioning and post that, the funding of the Orissa plant.”
(Sourced from BS)
Tags:Tags:TATA Steel, NCD, investors, non convertible debentures,Jamshedpur project,Orissa steel plant, Tata Steel expansion
TATA Steel, after its INR 3,477 crore follow on public offer, has secured commitments from investors to raise another INR 3,000 crore through a private placement of non convertible debentures in two tranches.
A part of this secured commitment had been raised in January for the Jamshedpur project and will continue as and when the need arises.
Mr Koushik Chatterjee Group CFO of TATA Steel told Business Standard that “The interest rate for this INR 3,000 crore NCD will be a ballpark of 9 to 9.75% and it will mature after 20 years.”
He said that “The idea is to move from high cost debt to a low cost one and with a better tenure. The company is now focusing on loan products that would give it a flexibility to repay over a long period of time, preferably 20 years, like in the case of this recent NCD.”
On a further fund raising of USD 500 million through a perpetual bond issue, which ideally is a very long term bond with interest payments that go on forever. Mr Chatterjee said that “Nothing is on the table right now.”
However, sources said that the company is looking to raise this sum through a long term bond placement.
Mr Koushik Chatterjee said that the company may launch the issue in the next three to six months.
Sources said the company was looking to raise the money from international market and will bear an interest rate of around 9%.
Mr Chatterjee made it clear that the INR 3,000 crore NCD will be used entirely for the capital expenditure of Jamshedpur and Orissa. He added that “Immediate focus is Jamshedpur expansion and commissioning and post that, the funding of the Orissa plant.”
(Sourced from BS)
Tags:Tags:TATA Steel, NCD, investors, non convertible debentures,Jamshedpur project,Orissa steel plant, Tata Steel expansion
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