SAIL plans ECBs to part-fund Rs 37,000cr spread

Steel Authority of India (SAIL) is all set to tap the overseas market through external commercial borrowings (ECBs) for raising funds to part-finance its proposed Rs 37,000 crore expansion plan.

"We shall be borrowing about Rs 20,000 crore, which also includes ECBs. The remaining shall be funded from internal accruals," S K Roongta, chairman of SAIL, said.

Asked about the timing and quantum of the ECB issue, Roongta said: "The investment will be spread over 4-5 years.  We shall approach the market as and when we require the funds. We have to start putting the financing plan in place by the end of this year, particularly the debt portion."

All the five integrated steel plants, for the first time, would undergo modernisation both in terms of size and scope simultaneously, he added.