Public CompanyJSW in talks with JFE Holdings on equity sharing
JSW Steel is in talks with Japanese firm JJFE Holdings on equity sharing arrangement of JSW Bengal Steel, which is setting up a 10-million tonne steel plant in West Bengal.
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"Details about JFE"s equity participation in JSW Bengal Steel were being worked out now," a source close to the development told PTI.
The equity participation and shareholding pattern would be finalised soon, he said.
Recently, JSW Steel and JFE Holdings, Japan"s second-largest steel company, had signed a collaborative agreement for setting up the West Bengal plant and to manufacture auto grade steel.
The source said financial closure was expected to be achieved during the current financial year for the steel plant and work would resume next fiscal.
Work on the plant had stopped as the company was unable to access bank finance for debt funding.
"Now with the equity partner JFE coming, funding of the project will become easy," the source said.
Meanwhile, JSW Energy plans would hit the capital market on December 7 to raise Rs 2,700 crore.
He said the company would set up a 800 Mw captive power plant for the steel project.
The surplus power would be purchased by West Bengal State Electricity Distribution Company for which a development agreement has already been signed.
He said work on the power plant would start next fiscal, adding that the steel plant might also come up concurrently.
"It will take three to four years for setting up the power plant," he said.
JSW Bengal has already acquired around 5,000 acre at Salboni in West Midnapore district.