Jai Balaji lines up projects worth Rs 16,000 crore

Kolkata-based Jai Balaji Industries has decided to enter into a memorandum of understanding (MoU) for setting up steel, cement and power plant projects at a cost of Rs 16,000 crore.

In an intimation to the stock exchanges, the company has informed that a five million tonnes steel plant, three million tonnes cement plant and 1,215 captive power plant over a period of 10 years. The projects would be located in the district of Purulia, West Bengal.

Sources said, the MoU would be signed in the third week of September. The company would require around 4,000 acre for the projects.

"The land has already been identified. Most of it is private land but barren," said sources. West Bengal Industrial Development Corporation (WBIDC) would acquire the land and lease it to Jai Balaji.

The company hopes to have 2,000 acres in possession by October, so that it could start work on the first phase.

The first phase entails, two million tonnes of steel capacity, one million tonne cement and 400 MW of power. Construction of the first phase would be completed in 30-36 months' time from the hand over of land.

The Rs 2,000 crore Jai Balaji group would fund the project through a mix of debt and equity. The company could also consider a follow-on public issue for the equity part.

Sources said, the investment in the first phase would be Rs 4,000-5,000 crore.

Jai Balaji's project has recently been approved by the West Bengal cabinet.

Seconday steel producer, the company has manufacturing facilities in Mangalpur, Durgapur, Ranigunj and Liluah in West Bengal and Rourkela in Orissa.

The Jai Balaji stock today closed at Rs 192.70 on the Bombay Stock Exchange.