Sangam Group to set up an integrated steel plant in Maharashtra

Mumbai: Sangam Group plans to set up an integrated steel plant at Devali, near Wardha in Maharashtra, with an investment of Rs 697 crore.

The project, being executed through its subsidiary Mahalaxmi TMT Pvt Ltd, will be funded by an equity contribution of Rs 217 crore and the balance through debt.

The company plans to raise Rs 480 crore through a consortium of banks including Union Bank of India, State Bank of Patiala, State Bank of Bikaner & Jaipur, State Bank of Hyderabad, Punjab National Bank, Bank of India, Oriental Bank of Commerce and United Commercial Bank.

In the first phase, the company will set up a manufacturing facility to produce 240,000 tonnes per annum (tpa) of mild steel billets through induction furnace route. It will also set up an 800 tonnes per day new technology DRI (direct reduced iron) plant which will use ore fines. In addition, it would have 500,000 tpa TMT bars, angles and channels capacity along with a 40 MW captive power plant in the second phase.

The company has commenced work on the first phase and expects to complete it by May. It has set up a medium frequency induction melting furnace at its steel plant in Wardha. Mahalaxmi TMT will achieve the complete integration of steel making with the completion of the second phase by May 2012.