Jul. 22, 2019 - TATA Steel is in process of raising USD 600 million of debt to part finance its high-cost debt and majorly to meet the expenditure for second phase expansion of Kalinganagar steel plant in Odisha. Mr Koushik Chatterjee, executive director and chief financial officer of Tata Steel, said that “We are in the process of raising the debt as we speak. The fund will be used for part refinancing, but majority of it will go towards the second phase of expansion at Kalinganagar.”
The second phase expansion at the Kalinganagar plant will set up cold rolling mill facility there. The plant is scheduled to be commissioned in 2020-21. Following this, its expansion capacity will go up to 8 million tonne per annum from 3 million tonne per annum at present.
The company has seen its net debt increase to INR 1 lakh crore as on March 31, 2019, and has set a debt reduction target of USD 1 billion for FY20.