SAIL to spend Rs 7,500 cr on modernisation, expansion
3 September 2015
Steel giant SAIL on Wednesday said it will spend Rs 7,500 crore on modernisation and expansion programme in the current fiscal ending March 2016.
The public sector undertaking (PSU) also said it will seek shareholders nod to raise Rs 5,000 crore through securities to part finance its plans.
So far, the 'Maharatna' company has invested over Rs 58,000 crore in its Rs 70,000 crore modernisation and expansion plan, which will augment the crude steel production capacity at its five steel plants to 23 million tonnes per annum (MTPA).
The company has taken up the massive programme of its plants as also for augmenting raw material supplies from its mines. The expansion programme has been decided to be funded through a mix of debt and equity, SAIL said in a regulatory filing.
"The Company has already spent about Rs 58,821 crore on its expansion programme till May 31, 2015. A sum of Rs 7,500 crore is planned to be spent during the current financial Year. In order to part finance this expenditure, your company plans to borrow about Rs 5,000 crore during the next year," it added.
On analysis of various options of raising funds through borrowing in domestic and international market, it has been decided by the Board to raise funds through private placement of Secured Non-convertible Debentures/Bonds to the extent of Rs 5,000 crore during the year, SAIL said.
The country's largest steel maker will seek shareholders nod to raise the amount at its annual general meeting scheduled for later this month.
SAIL's stock was trading at Rs 47.15, up 0.75 per cent, in the afternoon trade at the BSE.