JSW Steel plans Rs 6,000cr capex

JSW Steel is planning to invest Rs 6,000 crore to expand its steel capacity and set up a cold rolling mill (CMR) complex.

According to a release issued by the company to the exchanges today, the current expansion plan of increasing production from 2.5 million tonne per annum (MTPA) to 3.8 MTPA would be stepped up to 7 MTPA with an investment of Rs 5,000 crore. "The remaining Rs 1,000 crore would be used for setting up the CMR complex," the release added.

Out of Rs 5,000 crore, the company would raise Rs 2,000 crore from internal accruals and the remaining Rs 3,000 crore would be raised as debt from the international or domestic market.

The project is expected to go on stream by March 2009, the release added.

"The CRM complex, which would have a capacity of 1 MTPA, would be commissioned by March 2007," the release said.