PTI

New Delhi: Jindal Stainless Ltd will raise nearly Rs800 crore through external loans, possibly next week, to part-finance its Rs5,600 crore ($1.38 billion) expansion programme at Orissa plant.

“We will be raising Rs800 crore through overseas syndicated loan to part-finance capacity expansion of our Orissa project,” Jindal Stainless director N C Mathur told PTI.

He said talks were on with various banks to finalise the details of the fund raising and the process would be completed in due course of time.

The company has already raised Rs1,000 crore through a term loan from State Bank of India, Mathur added.

It would increase capacity of the plant in a phased manner and has invested Rs2,250 crore in the first phase, which is nearing completion.

The second phase of expansion at the unit would be started this year to increase the company’s production capacity to 0.8 million tonnes a year.

During the first phase of expansion, the company had commissioned ferro alloy plants, coke oven and power plants at the facility.

The company reported a 121% jump in net profit during 2006-07 at Rs353.1 crore as against Rs159.73 crore in the previous fiscal.