Mesco Steel to raise funds for capex plan.

Mideast Integrated Steel Ltd. (MISL), a Mesco Steel Group firm, plans to raise $400 million through external commercial borrowings (ECBs) to expand its steelmaking capacity at Kalinganagar from 1.2 mtpa at present to 3.5 million tonne per annum (mtpa).

'We are now planning to increase the steel-making capacity of the plant to 3.5 mtp in two phases, for which we have an option to raise foreign debts as some banks are willing to pay the amount,' said Rita Singh, chairperson and managing director, MISL.

The public hearing for the expansion has been completed and the documents have been submitted to the Government of India for clearances, she added. The company is also going for a credit rating before raising funds to meet its working capital requirement.

BS