Shri Bajrang Power and Ispat Ltd., among top 10 steel producers of India, has lined up brownfield capacity expansion plan worth ₹217 crore of which ₹145 crore has already been invested, a top official said.
The company would be setting up an 0.20 MTPA additional sponge iron plant enhancing sponge-iron output from 0.61 MTPA to 0.81 MTPA. The firm would be expanding steel melting shop capacity from 0.24 MTPA to 0.37 MTPA as well as set up a 0.10 MTPA galvanising plant.
The firm would also enhance captive power capacity by setting up a waste heat recovery based power plant capable of generating 16 MW. The work is expected to be completed before FY22.
As on May 31, the company had thermal power capacity of 83 MW.
Through a subsidiary, it is also setting up a 50 MW solar power plant costing ₹175 crore to reduce dependence on thermal energy.
“The solar power plant will come up during FY23 through investment from internal sources and this will further reduce carbon footprint besides enhancing captive power consumption from 98% to 100%,” said Sandeep Goel, CFO.
He said the company would finance its capacity expansions through a combination of internal accrual and external borrowings.
Going forward, the company on a standalone basis intends to carry zero-term debt and only will have working capital debt to carry out business.
