JSW Steel will establish a 1.75-lakh tonne steel plant in Georgia. It has formed a 49:51 per cent alliance with an UK-based company for the $42-million plant and will infuse about $7 million. The debt-equity ratio will be 2:1 and the European Bank for Reconstruction and Development has come forward to finance 50 per cent of the debt portion of $28 million. The project was hoped to become functional in 2008-09 and would cater to the local market there. The venture was more a sort of hedging the company had resorted to as it sourced its iron ore requirements in the domestic market. In the last 18 months the company has made huge investments on takeovers and expansion projects of about Rs 10,500 crore. The gains of the investment will flow from this year and by 2010 the company would invest another Rs 14,000 crore in various projects. JSW Steel has mulled to enhance it capacity from 4.8 mpta to 32mpta by 2020, besides targeting to achieve self sufficiency in coking coal and iron ore.
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