September 06, 2008

Gangotri Iron & Steel to commission new units soon

BL reported that Gangotri Iron & Steel is expanding capacity through new TMT bar and wire rod plants located near Patna and hopes to commission them shortly.

Mr Sanjiv Kumar Chowdhary MD of Gangotri Iron & Steel said that the 0.12 million tonnes per annum billet and TMT facilities with an investment of INR 50 crore would be commissioned by the end of next quarter and the 60,000 tonnes per annum wire rod plant with an induction furnace would become operational in April 2008 at a cost of around INR 14 crore.

As per report, the projects are likely to result in huge cost savings. Mr Chowdhary said that “The advantage would accrue on 3 counts, 7.5% price preference from government orders, 90% VAT refund and relief on CST for sales in the neighbouring states.”

Gangotri Iron & Steel would soon issue about 4 million shares to mop up around INR 12 crore, including premium. It has already raised around INR 8.5 crore through warrant conversions and INR 27.75 crore through borrowing from SBI.