Jai Balaji Industries today said it has received a coal block with Bhushan Steel at Andal East in Burdwan district of West Bengal for their proposed steel plants.
"We have received coal block along with Bhushan Steel and city-based firm Rashmi in Andal East and the estimated deposit is 229.50 million tonnes," Jai Balaji Chairman and Managing Director A Jajodia told PTI.
"We expect to begin exploration work in a couple of months," he said. Jai Balaji would set up steel plant at Raghunathpur in Purulia district of West Bengal.
Officials of Bhushan Steel could not be contacted.
"The coal block would be used for existing 1.1 million tonnes steel plant in Durgapur and the greenfield steel plant. However, with our share in the block can meet only partial requirement for coal," Jajodia said.
"We would begin construction work for the 5 million tonnes greenfield steel plant shortly as we are expecting 1,100 acres of land in a month," he added.
Jai Balaji's first phase investment is Rs 4,000 crore. The company through internal accrual and Qualified Institutional Players of Rs 450 crore, would raise Rs 1,500 crore and rest would be met through debt, the CMD said.
"We are yet to complete the financial closure but hope to complete soon," Jajodia said.
