Jaiprakash Associates today announced its foray into the steel sector with the acquisition of Malvika Steel in Jagdishpur, Uttar Pradesh, for Rs 207 crore."We will put in Rs 1,800 crore over next 26-28 months to make it one million tonne integrated steel plant," Jaiprakash Associates executive chairman Manoj Gaur said.The company acquired Malvika Steel, earlier promoted by Usha Group, in an open auction made by the Debt Recovery Tribunal.The steel firm was taken over by some financial institutions after it failed to meet its interest obligations.Jaiprakash would pump in Rs 800 crore and Rs 1,000 crore in two phases. The amount would be funded through a mix of debt and internal accruals, Gaur said. The group would also leverage a part of $400 million raised recently through an offshore convertible bonds issue.Malvika Steel is a brownfield project. Jaiprakash Group seeks to produce long steel products used mainly in the construction sector.
