Southern Ispat to invest Rs 500cr in Kerala

Southern Ispat is planning to set up an integrated steel plant at Kannur, Kerala with an investment of Rs 500 crore.

According to a release issued by Southern Ispat to the BSE today, the plant will produce 1,000 metric tonne of sponge iron, 800 metric tonne of steel billet, and 50 MW power from waste heat recovery.

"The company is signing a memorandum of understanding (MOU) with Kerala State Industrial Development Corporation on September 23, 2006," the release added.

While 22% of the funds required for the project would be brought by the promoters, financial institutions would bring in 38%, and the remaining 40% would be raised through a public issue.

The project is proposed to be started in January 2007, and the production is expected to start stage-wise from April 2008, the release added.