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Bhushan Steel plans Rs 28,000 crore plant

02 Mar 2010 Evaluate

Bhushan Steel, the New-Delhi based auto-steel maker, is planning to set up a 6 lakh tonne steel plant in Karnataka at an investment of Rs 28,000 crore. The proposed steel plant will be a value-added one.

 

The plant will have a debt to equity ratio of 2:1. Bhushan Steel is planning to start construction by April 2011. The company has approached the Karnataka government for land allotment and hopes to secure land by that time.

 

Bhushan Steel, which last month commissioned a 2.5 million tonne blast furnace at its Orissa plant, is working to complete the second phase of the same capacity by 2012. Apart from Orissa, the steelmaker is also looking to set up a 6 million tonne steel plant in West Bengal in partnership with Sumitomo Metal Industries, Japan.

 

Both companies have expressed the desire to work on the plant together. However, the plant is currently in limbo as Coal India has objected to setting up a steel plant in the coal belt of West Bengal.

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