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Essar to procure $5 bn capital goods from China

Essar to procure $5 bn capital goods from China
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First Published: Mon, Sep 10 2007. 04 29 PM IST
Updated: Mon, Sep 10 2007. 04 30 PM IST
PTI
Beijing: India’s infrastructure group Essar said on 10 September it will procure capital goods from China worth $5 billion in the next three years to execute various projects in steel, power, telecom, shipping and construction.
The goods would be sourced through Global Supplies (UAE) FZE, a subsidiary of Essar Global Ltd (EGL), which is setting up a new office in Beijing.
“We will use our office in Beijing as a global sourcing base for capital goods required for our steel, energy, power, communications, shipping, telecommunications and construction businesses,” Essar Global chairman Shashi Ruia told PTI here.
The Essar Group has finalised an investment plan of over $16 billion over the next four years in capacity enhancement and technological upgrades in various businesses. The requirement of capital goods for the execution of these mega projects is expected to be over $11 billion.
“Over the next three years, Essar plans to procure over $5 billion worth of capital goods from China,” Ruia said.
Essar Power Holdings Ltd is expanding its capacity from the present 1,200 MW to 4,800 MW, for which $2 billion worth of equipment is required. Essar Energy Holdings Ltd plans to expand its capacity from 10.50 million tonnes per annum (MTPA) to 32 MTPA, which also will require $2 billion worth of capital machinery.
The remaining $1 billion worth of equipment is required for Essar Steel Holdings Ltd, which is expanding its capacity from 8.6 MTPA to 23.5 MTPA.
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First Published: Mon, Sep 10 2007. 04 29 PM IST