Date:14/04/2005 URL: http://www.thehindubusinessline.com/2005/04/14/stories/2005041401130200.htm

Back Vizag Steel Plant mulls IPO for expansion

Our Bureau

Visakhapatnam , April 13

VISAKHAPATNAM Steel Plant plans to double its capacity from the present 3.2 million tonnes, and may go in for an IPO after two years to part-finance the project, depending on the market conditions then, according to the Chairman and Managing Director, Mr Y. Siva Sagara Rao.

Briefing the press at the plant he said VSP would require Rs 8,500 crore or so for the expansion.

"Once the Government gives the nod, which we expect in a few months, we will go about it. The plant will be able to wipe out the accumulated losses this year and then it will be in a position to meet the Rs 5,000 crore required for expansion out of its internal resources, but the rest we have to get from the financial institutions or we may even go public, if the capital market is conducive," he said.

Mr Siva Sagara Rao said the plant would need the remaining Rs 3,000 crore or so only after two years or so. "Once the green signal is given, we will start the work with the money on hand. After two years, we will explore all options and try to get the funds at the cheapest rate," he said.