Jindal Steel & Power has raised Rs 3,500 crore to fund Angul project

Jindal Steel & Power has raised Rs 3,500 crore from a consortium of lenders for a steel project it is setting up in Odisha.

The steelmaker will use the loan for a 2-million-tonne, coal-to-gas direct reduced iron (DRI) plant near Angul, Odisha.

The project is based on the two resources abundant in India (noncoking coal and iron ore) and will have lower costs compared to traditional plants.' The average cost of borrowing is about 11 per cent. The debt will add to Jindal Steel's consolidated debt of Rs 14,716.8 crore as on March 31, 2012.

Source: ET