Share price of Uttam Galva Steel advanced 17.30 percent intraday Tuesday post its arm Shree Uttam Steel and POSCO signing a Memorandum of Understanding (MoU) to set up manufacturing units.
Advertisement
A pact in this regard was signed in Mumbai this morning between Shree Uttam Steel and Power and steel giant Posco. “Right now, work on the DPR has started and the construction on the plant is likely to start after monsoon next year”, Uttam Galva Steels Director Ankit Miglani told PTI.
Uttam Steel and Power is owned by the co-promoters of Uttam Galva Steels Ltd, which is jointly owned by the world’s largest steelmaker ArcelorMittal.
In 2011, Uttam Galva had acquired Bangalore-based Brahmani Industries, a company engaged in manufacturing and sale of ferrous and non-ferrous steel, for an undisclosed amount.
Uttam Galva Steels surged as much as 18 percent, the biggest jump since January 2012.
The proposed joint venture plans to set up the plant, to be located at Satarda in Sindhudurg district, in two phases and hopes to take advantage of an expected surge in steel demand in the country, the company said.
The company proposes to set up a 3-MTPA steel plant and 150 MW of captive power plant. IDCO had asked the company to pay Rs 54 crore for 1,703 acres of land that was handed over, and another Rs 19 crore to pay for de-reserved forest land.
The proposed venture would help Posco’s expansion in India after a decade-long delay to its $12 billion investment in a steel, port and mine project in the eastern Indian state of Odisha.
Advertisement
The steel plant project in Maharashtra for Posco is in line with its stated shift in strategy to focus on other opportunities in India. The project in Jagatsinghpur district in Odisha is billed as the largest FDI in India.
