Mumbai based Uttam Galva Steel plans a CAPEX of INR 300 crore to INR 500 crore over the next 2 years.
Mr Ankit Miglani director of Uttam Galva Steels on the sidelines of the company's annual general meeting told reporters that "We expect to spend INR 300 crore to INR 500 crore including for setting up a 60 MW power plant.”
He said that "All our investment will go into down stream activities and for cost-reduction mechanism and the money will be raised through internal accruals and debt.”
He added that the power plant will help reduce its production cost significantly.
Mr Miglani said that the power plant would help in increasing productivity by giving better quality power and significantly reduce production cost. We will use 30 MW internally and 30 MW will be sold until we expand to consume it fully.”
Asked on its co promoter ArcelorMittal's role in future expansion plans, Mr Miglani said that "Any new expansion plan will be initiated by joint decision once the new Board is constituted. After the open offer completes on November 18th 2009 and all regulatory approvals are received, the new Board will be formed which will take future decisions.”
Mr Miglani said that “Going forward, with ArcelorMittal's support, the company will expand profitably. With the hot rolled coil back up and technology back up, we are achieving a level of raw material security and technology enhancement which will add overall value to the organization.”
(Sourced from www.steelguru.com
Monday, September 28, 2009
UGSL mulls INR 500 crore CAPEX over two years in power sector
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