Out of the estimated project cost of Rs 275 crore, Rs 160 crore would be from term loans from financial institutions (the rate of interest of which will be on an average about 20 per cent per annum). The loan has already been sanctioned and partly dispatched. The J P Chowdhary- company, formed through the merger of Titagarh Steel and Titagarh Paper, expects to mop up Rs 60 crore from a public issue of equity shares, and the remaining Rs 55 crore would be funded through promoters' contribution.
The current equity base of the company is around Rs 10.88 crore. The company has modernised and renovated six of the old paper machines into running order, and they have a capacity of 175 tonnes per day. Other machines like boilers and evaporators have also been renovated.
A de-inking plant is under construction. This plant will be de-inking waste papers that will be imported from the US and European countries. The capacity of this plant will be about 300 tonnes per day, and will be in operation by the middle of 1997 said the Chairman and Managing Director J P Chowdhary.
TSl will also be importing two paper machines from the Finnish company, Tervakoski O Y. The machines will have a combined capacity of 60 tonne per day. The company has placed the order, and the machines are expected in India by the end of the year, and should be ready by Sept