I S T to set up 115000 TPA Sponge Iron Unit

I S T Ltd has announced that the Board of Directors of the Company at its meeting held on October 31, 2006, inter alia, has passed the following resolutions:

1. To provide corporate guarantee provide in favour of Punjab National Bank, Mid Corporate Branch, Barakhamba Road, New Delhi, in respect of availment of Term Loan amounting to Rs 40 crores and Fund Based Working Capital limit amounting to Rs 1.75 crores by M/s IST Steel & Power Ltd (wholly owned subsidiary of the Company).

2. To provide Corporate Guarantee in favour of Oriental Bank of Commerce, E - Block Connaught Place, New Delhi, in respect of availment of Term Loan amounting to Rs 20 Crores by M/s IST Steel & Power Ltd (wholly owned subsidiary of the Company).

IST Steel & Power Ltd is setting up a 115000 Tonnes per annum Sponge Iron manufacturing plant and an 8 MW power generation plant in Distt. Bellary, Karnatka. The company has bought 60 acres of Industrial Land for setting up its factory at Yerabanahalli Village, Sultanpur Dist. Bellary, Kamataka. IST Steel & Power Ltd has already entered into Memorandum of Understanding with JSW Steel Ltd (formerly Jindal Vijaynangar Steel Ltd). IST Steel & Power Ltd will manufacture sponge iron on conversion basis for JSW Steel Ltd who will provide the basic raw materials and shall take back the sponge iron manufactured on payment of conversion charges. The project will be operational in the financial year 2007-2008.

Source : Equity Bulls

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