The Rs 1,100-crore project between Ispat Industries and UK-based Stemcor to set up a coke-oven plant at the domestic firm's site near Mumbai is likely to take off soon as the venture is expected to achieve financial closure by the month-end.
"The project will achieve the financial closure by the end of this month. The construction work will start soon after that," a person in the know of the development told PTI.
Last year, both the companies had entered into a joint venture (JV) to set up a one million-tonne coke oven plant. Stemcor holds 76 per cent stake while Ispat has 24 per cent holding in the project.
To achieve raw material security for its 3.2 million tonnes per annum steel plant, Ispat Industries is working towards achieving backward integration.
"We are working on backward integration in power plant and coke plant," Ispat Industries Vice-Chairman and Managing Director Vinod Mittal told reporters on the sidelines of India Economic Summit here.
Coke-oven plant converts coking coal into metallurgical coke used in making steel.
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The company has a capital expenditure plan of Rs 1,700 -1,800 crore for the current fiscal, Mittal said.
Expressing concern over the influx of cheap imports in the country, Mittal said, "Issue is the price factor. We (industry) are looking at ... Safeguard duty (to check such imports)."