ArcelorMittal and Uttam Galva to set up steel plant in Maharashtra

ArcelorMittal Netherlands BV, controlled by Lakshmi Mittal, is likely to build a one million tonne (MT) steel plant at Satarda in Maharashtra through a joint venture (JV) with Uttam Galva Steels Ltd (UGSL). ArcelorMittal Netherlands BV, a subsidiary of ArcelorMittal, has made an open offer to raise its stake in USGL to 35% at Rs120 per share, which closed on Thursday. USGL had informed bourses on 4th September about its co-promotion agreement with ArcelorMittal Netherlands BV.

ArcelorMittal will partner with the Miglanis to set up a 2MT Hot Rolled Coil (HRC) project at Redi near Goa. The Miglanis already own 750 acres of land there, which once belonged to Usha Ispat, controlled by Vinay Rai. Usha Ispat had a pig iron plant at Redi, which was auctioned under the provisions of the Sarfaesi Act, 2002. The land is also located near a jetty and is close to the raw material source.

According to media reports, State Bank of India (SBI), Punjab National Bank, Canara Bank and IDBI Bank Ltd will fund the project with the lead syndicator being SBI. So far Rs2,100 crore has been sanctioned and the rest will be funded by promoters through equity.