Jai Balaji completes merger with HEG steel division

March 13th, 2008 - 12:59 am ICT by admin  

Kolkata, March 12 (IANS) Jai Balaji Industries got a foothold in two mineral-rich states of eastern India as it completed a merger of the steel division of HEG Ltd at Chhattisgarh with itself and purchased 100 percent stake in Nilachal Iron and Power Ltd in Jharkhand. The shareholders at their meeting held Wednesday approved the scheme of arrangement of transfer of steel unit of HEG Ltd with Jai Balaji Industries Ltd.

A company release said 2007 proved to be highly rewarding for it as the booming economy, constant growth and huge investment and demand for infrastructure brought good news to the steel industry.

The company undertook major expansion programmes so as to participate in fulfilling the demand of the booming infrastructure growth, it said.

During the year, the company acquired the steel division of HEG Ltd consisting of a sponge iron plant, SMS division and a power plant in Chhattisgarh subject to completion of necessary legal formalities.

The company also acquired ownership control over Nilachal Iron and Power Ltd, a sponge manufacturing company in Jharkhand.

In addition various modules comprising power plant, coke oven plant, pallet plant, tubes and pipes, ferro alloys and rolling mills at a total cost of Rs.10,550 million were undertaken.

But the most significant event was the signing of a MoU with the West Bengal government for setting up a 5 million tonne steel plant, 3 million tonne cement plant and 1,215 MW captive power plant near Purulia for a total investment of Rs.160 billion.

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