ESL to tie up Rs 23 bn loan for steel project

For the purpose of long-term project funding, Electrosteel Steels (ESL) plans to raise Rs 2,300 crore through a debt syndication with a consortium of bankers led by State Bank of India (SBI) for its Bokaro steel project.

The arm of Electrosteel Castings is in the process of implementing a 2.51 million tonne per annum (mn tpa) integrated steel plant at Bokaro.

Reports indicate that the firm may attain financial closure for the project within this month. The Kolkata-headquartered company has already pumped Rs 412 crore into Bokaro integrated steel project, as promoters’ equity.

The greenfield plant will be a fully integrated plant with all the production facilities like, sinter, coke oven, blast furnace, dolomite plant, oxygen plant, lime plant, captive power plant, rolling mill, wire rod mill, steel making shop, ductile iron pipe, pig iron, continuous casting machine.

It is learnt that the company has already established adequate raw material linkages and strategic location supported by leading Chinese consulting agency for supply of technology and engineering.

A top official of the firm is quoted as saying that the greenfield integrated steel plant would cater to the growing need of steel of the country.