Kamineni Steel achieves financial closure

Kamineni Steel & Power India, part of the Hyderabad-based Kamineni group (Kamineni Suryanarayana Chairman), has on Friday announced financial closure for its 3.6 lakh tonnes steel billets and 220 mw gas-based power project, involving a total capital outlay of Rs 1,534 crore.

Chairman Kamineni Suryanarayana said a consortium of nine banks led by Indian Bank has arranged Rs 1,248 crore of loans. The balance will be pumped in by the promoters in the form of equity, he said.

The project, coming up at Narketpalli in Nalgonda district of Andhra Pradesh, will take off over the next 18 months. The company has already placed orders for equipment and also tied up gas supplies for the power project with the Gas Authority of India (Gail), he said.

Suryanarayana said the project is coming up adjacent to the facilities of other group companies which are into manufacture of seamless tubes used in the oil and gas drilling operations by the Indian public and private sector giants including ONGC and Reliance.

The proposed steel billets project would act as raw materials for manufacture of raw pipes and then for production of seamless pipes used for oil and gas drilling, he said.

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