Tata Steel Limited to invest Rs. 400 crore for alternate railway line to Kalinganagar Steel Plant

Tata Steel Limited ('the Company/TSL') has on December 15, 2021, executed a long-term agreement with Angul Sukinda Railway Limited ('ASRL'), for the construction, operation and maintenance of an alternate railway line ('Additional Rail Line'). The agreement is for a period of 20 (twenty) years to meet the logistic requirements of TSL's Kalinganagar Steel Plant. TSL will be funding the entire expenditure of ₹400 crore (in a phased manner) for construction of the Additional Rail Line by subscribing to 40,00,00,000 (Fortycrore) non-convertible, non-cumulative, redeemable preference shares of face value ₹10/- (Rupees ten) each ('RPS') of ASRL ('Transaction").

ASRL was incorporated as a special purpose vehicle by the Ministry of Railways, for developing, financing, construction, operation and maintenance of a 104.24 km broad gauge single railway line between Angul and Sukinda in Odisha to establish direct link between (1) iron-ore rich areas of Odisha viz. Joda-Barbil to steel and sponge iron industries in Angul region and (2) between coal mining region in Talcher to industries in Jakhapura, JodaBarbil and areas in Kendujhar district, Odisha.

Turnover of ASRL as on March 31, 2021 is ₹539.62 crore.

Shares of Tata Steel Limited was last trading in BSE at Rs. 1154.20 as compared to the previous close of Rs. 1153.85. The total number of shares traded during the day was 118046 in over 5363 trades.

The stock hit an intraday high of Rs. 1168.90 and intraday low of 1143.90. The net turnover during the day was Rs. 136680474.00.

Source : Equity Bulls

Keywords

TataSteel INE081A01012 LongTermAgreement AngulSukindaRailway AlternateRailwayLine KalinganagarSteelPlant