Economic Times reported that a consortium of lenders led by IL&FS have agreed to provide INR 900 crore to an iron ore project in Odisha promoted by UK based trading major Stemcor.

Non banking finance companies such as Indostar Capital, Tata Capital, Birla Finance and IFCI are the other members of the IL&FS consortium.

Mr Mathew Stock MD of Stemcor India said “Obviously, the fundamentals of the project have given comfort to the lenders who have been very reluctant to lend to the mining industry. The parent company's guarantee to the project also sends the right signal to the institutions.”

Brahmani River Pellets, a wholly owned subsidiary of Stemcor UK, is executing the project. This is one of Stemcor's largest projects in India and includes a beneficiation plant, a 230 kilometer pipeline and a 4 million tonne pellet plant.

Source - Economic Times

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