Hindustan Times reported that Bellary based Bharat Mines & Minerals has chalked out plans to set up a Greenfield steel manufacturing plant at Hospet in Karnataka at an estimated investment of around INR 6,700 crore.

The plant is expected to have an annual steel manufacturing capacity of around 2.2 million tonnes. The unit would be spread across 3500 acres and the plant is expected to be fully functional by 2014.

Mr Dinesh Singhi MD of Bharat Mines & Minerals said “We have achieved financial closure for the project. The total investment of INR 6,700 crore in the project is being funded through a mix of debt and internal accruals.”

Mr Singhi added that a consortium of fourteen banks led by the State Bank of India has extended a loan of INR 4,200 crore to the company for this project and other banks in the consortium include Canara Bank and Punjab National Bank.

The company already owns and operates a pelletization plant, beneficiation plant, sponge iron plant, induction furnace and a steel rolling mill. BMM is also diversifying into cement production and its cement manufacturing plant is set to come up at Anantpur in Andhra Pradesh.

(Sourced from HT)