India's MSP Steel & Power Announces $50 Million in Expansion Projects

---

Researched by Industrial Info Resources (Sugar Land, Texas)--MSP Steel & Power Limited (BSE:532650) (Kolkata, West Bengal), an Indian iron and steel company, recently announced that it will increase production capacities. The four projects being implemented are a 350,000-ton-per-year sponge iron plant, an 18-megawatt (MW) power plant, a 383,625-ton-per-year coal washery, and a 4-acre worker village.

The total cost of implementing the projects has been estimated at $50 million, of which a $33 million credit line will be extended by a consortium of banks comprising Allahabad Bank (BSE:532480) (Kolkata, West Bengal), Indian Overseas Bank (BSE:532388) (Chennai, Tamil Nadu), Oriental Bank of Commerce (BSE:500315) (New Delhi), and State Bank of India (BSE:500112) (Mumbai). The credit amounts extended by the four banks are $6.4 million, $7.2 million, $6.4 million, and $13 million, respectively. The remaining amount will be raised by the promoters of the project through internal accruals. The loan has been approved in full, and the company already has begun to access the funds.

The company also has announced plans to set up a 30-MW power plant at an estimated cost of $32 million. Promoters will raise $11 million, and the consortium of banks will fund the remaining portion.

The MSP Group was founded in 1996 with an 18,000-ton-per-year mild steel ingot plant in West Bengal. The plant did not survive, and in 1998 the group came back with a re-rolling mill that produced construction bars. Today, the company is one of the leading secondary steel manufacturing companies in eastern India. MSP Steel & Power produces 755,000 tons per year of sponge iron; 500,000 tons per year of mild steel billets; 184,000 tons per year of construction bars; and 36 MW of power. About 75 MW of power generation capacity is under installation. The company also owns a 350,000-ton-per-year coal washery unit. The group has manufacturing facilities at Andhra Pradesh, Chhattisgarh, Maharashtra, Jharkhand, Orissa and West Bengal.

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy related markets. For more than 26 years, Industrial Info has provided plant and project opportunity databases, market forecasts, high resolution maps, and daily industry news.