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Essar to buy $5 bn goods from China

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Press Trust Of India Beijing
Last Updated : Feb 05 2013 | 2:06 AM IST
India's infrastructure group Essar said today that it will procure capital goods worth $5 billion from China in the next three years to execute projects in steel, power, telecom, shipping and construction.
 
The goods would be sourced through Global Supplies (UAE) FZE, a subsidiary of Essar Global (EGL), which is setting up a new office in Beijing.
 
"We will use our office in Beijing to be a global sourcing base to procure capital goods required for our steel, energy, power, communications, shipping, telecommunications and construction businesses," said Essar Global chairman, Shashi Ruia.
 
The Essar Group has finalised an investment plan of more than $16 billion over the next four years for capacity enhancement and technological upgrades in various businesses. The requirement of capital goods for the execution of these mega projects is expected to exceed $11 billion.
 
"Essar plans to procure over $5 billion worth of capital goods from China over the next three years," said Ruia.
 
Essar Power Holdings is expanding its capacity from the present 1,200 mw to 4,800 mw, for which capital equipment worth $2 billion worth is required. Essar Energy Holdings plans to expand its capacity from 10.50 million tonne per annum (mtpa) to 32 mtpa, which will require capital machinery of $2 billion.
 
Essar Steel Holdings would use the remaining capital equipment of $1 billion from China for its capacity expansion from 8.6 mtpa to 23.5 mtpa.

 
 

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First Published: Sep 11 2007 | 12:00 AM IST

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