Mumbai: Public sector steel-maker Rashtriya Ispat Nigam Ltd (RINL) is planning to raise around Rs 500 crore of debt in the near future to fund its expansion plans.
"We plan to raise Rs 400-500 crore from the debt market to fund our expansion," RINL Chairman and Managing Director A P Choudhary said here Friday on the sidelines of a steel summit.
He, however, didn't specify the timeline for the proposed fund raising plan.
RINL, which operates the Visakhapatnam Steel Plant, has a board-approved 10-year borrowing plan of Rs 22,500 crore to fund its growth plans.
Last month, State Bank of India sanctioned Rs 2,650 crore to fund the PSU's capital expenditure plan. As part of its expansion programme, the company aims to increase steel making capacity to 6.3 million tonnes (MT) with an investment of around Rs 12,500 crore.
The company, which has already spent Rs 9,000 crore towards this, had a crude steel production of 3.8 MT last fiscal.
"We hope to complete the expansion (with capacity to produce 6.3 MT by end of this year," Choudhary said.
Besides capacity addition, RINL also plans to invest additional Rs 7,000 crore towards modernisation of its existing plant, which will raise its capacity to 7.3 MT per annum.
First Published: Friday, April 12, 2013, 18:06