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Prakash to raise $100 m

NEW DELHI: Prakash Industries (PIL), with interests in steel and power, is in the process to raising $100 million through foreign currency convertible bonds to set up a 625-MW thermal power plant at Champa in Chhattisgarh.

The plant with an outlay of Rs. 2,500 crore will be commissioned by 2013.

The proposed captive power plant will enable the company to secure its own long-term power needs while the surplus power will be sold through open access on spot prices. The company has been allotted Fatehpur coal block in Chhattisgarh for power expansion projects, according to an official statement issued here. The company has one of the largest integrated steel plants set up in technical collaboration with Lurgi Germany through coal based sponge iron route in Chhattisgarh with state-of-the-art tech- nology.

The company is now operating 100 MW captive power plant using waste hot gases from the sponge iron kilns and coal based boilers. The company is into manufacturing of high value added products such as wire rod and structurals. The company is in the process to start manufacturing of TMT bars by October.

The company has planned backward integration to fulfil the raw material requirement for its operations. It is operating a captive coal mine at Chotia in Chhattisgarh to fulfil coal requirements of the DRI Kilns and has been allotted coal block at Madanpur in Chhattisgarh for expansion requirements. The company has been allotted iron ore mines which are expected to be operational during this year.

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