Bharat Mines plans Rs 6,700-cr steel unit | business | Hindustan Times
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Bharat Mines plans Rs 6,700-cr steel unit

The Bellary-based Bharat Mines & Minerals (BMM) has chalked out plans to set up a greenfield steel manufacturing plant at Hospet in Karnataka at an estimated investment of around Rs 6,700 crore. The plant is expected to have an annual steel manufacturing capacity of around 2.2 million tonnes.

business Updated: Dec 20, 2011 20:13 IST
HT Correspondent

The Bellary-based Bharat Mines & Minerals (BMM) has chalked out plans to set up a greenfield steel manufacturing plant at Hospet in Karnataka at an estimated investment of around R6,700 crore. The plant is expected to have an annual steel manufacturing capacity of around 2.2 million tonnes.

“We have achieved financial closure for the project,” said Dinesh Singhi, managing director BMM. “The total investment of Rs 6,700 crore in the project is being funded through a mix of debt and internal accruals.” Singhi added that a consortium of fourteen banks led by the State Bank of India has extended a loan of Rs 4,200 crore to the company for this project. Other banks in the consortium include Canara Bank and Punjab National Bank.

The greenfield steel-manufacturing unit would be spread across 3500 acres and the plant is expected to be fully functional by 2014. Greenfield projects refer to entirely new projects.

Singhi added that BMM expects to garner revenue of around Rs 2,000 crore during the current financial year and expects the company’s revenue to increase by 25% over the next couple of years.

The company already owns and operates a pelletisation plant, beneficiation plant, sponge iron plant, induction furnace and a steel rolling mill. BMM is also diversifying into cement production and its cement manufacturing plant is set to come up at Anantpur in Andhra Pradesh.