March 26, 2008: Ramsarup Group, which is engaged in the business of producing various grades of steel wires, TMT bars and steel, is looking to make fresh investments in the state.
The Kolkata-based group plans to set up a greenfield 2 million ton cement grinding unit as well as a 300 mw thermal station at Siuri in West Bengal.
Apart from the cement and the power plant, the proposed venture also envisages the setting up of coke oven plant in the same premises. Total outlay on the project is estimated at Rs 2,200 crore.
Confirming the development, top-level Writers' Buildings sources said: "Ramsarup Group is keen to set up a greenfield cement and a power plant at Siuri, located in Birbhum district. Company officials have discussed the project with us and need some 1,200 acres for the proposed project. A lot of groundwork has been done and efforts are on to give shape to the plan."
Ramsarup Industries chairman & managing director Ashish Jhunjhunwala, however, was not available for comment despite repeated attempts.
Information trickling in suggests a large chunk of the land, which Ramsarup Group plans to acquire, belongs to the state government. "The company is in talks with us for acquisition of land. Details will get firmed up shortly," the state government source added. If the talks fructify, this would probably be one of the largest investments in Birbhum -- one of the backward districts in the state.
Sources claim fly ash generated from the power plant will be used to produce cement and subsequently, sell cement in the domestic market.
A leading maker of steel wires, Ramsarup Group has chalked out a capital expenditure of some Rs 4,000 crore for its wire, power, steel businesses. The capex will be funded by a mix of internal accruals, equity and long term debt. The group has also sought coal linkages from the West Bengal government for the proposed 300 mw captive power plant.
The group is also looking to raise its steel wire capacity to 6 lakh ton over the next three years from 2.25 lakh ton now. Their Durgapur unit (West Bengal), recently, commenced production of some 50,000 ton per annum of low relaxation pre-stressed concrete (LRPC) wires used in infrastructure sector. The capacity of this unit will be augmented to 3,75,000 ton per annum in the near future.
Source: The Economic Times