Southern Ispat to setup new steel plant at Kannur in Kerala

Southern Ispat Ltd has announced that the Company is planning to set up an integrated Steel Plant at Kannur in Kerala with investment of Rs 500 Crores. This Steel Plant propose to produce 1000 MT of Sponge Iron, 800 MT of Steel Billet, 50 Megawatt Power by waste heat recovery and one structural and TMT bar rolling mill.

Further the Company has informed that, the Board of Directors of the Company at its meeting held on September 18, 2006 has approved this Scheme. The Company is going to sign a Memorandum of Understanding (MOU) with Kerala State Industrial Development Corporation on September 23, 2006. The Proposed land is to be acquired from Kerala State Government through KSIDC. The required funds are proposed to be arranged as below:

1. 22% will be brought by Promoters

2. 38% will be brought by Financial Institutions

3. Public Issue will bring Balance 40%.

The entire Project is proposed to start in January 2007 and the production is proposed to start stage wise from April 2008.

Source : Equity Bulls

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