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Steel makers heading to Singapore seeking investments

Steel makers heading to Singapore seeking investments

Faced with fund crunch for their expansion plans, Indian steel-makers are on a three-day visit to Singapore seeking investments from the island nation's GIC and Temasek companies, among others.

The delegation -- to be led by Union Steel Secretary, D R S Chaudhary and comprising of representatives of both public and private sector firms -- will meet officials from Singapore's leading bankers, FIIs, Mutual Funds and private equity firms, a source in the Ministry told PTI.

"On the last day of their tour on Friday, they will meet senior representatives of Temasek and GIC, " the source said, adding they may also meet people based in Singapore dealing in coal for the steel sector.

SAIL's finance director, Anil Chaudhary, Rashtriya Ispat's CMD, A P Chaudhary, and MOIL CMD, G P Kundargi, would be part of the delegation from the public sector. A joint secretary would also be part of the delegation. It would also include representatives from Tata Steel, JSW Steel, Jindal Steel and Power and Essar from the private sector.

India's steel capacity, which currently stands at around 90 million tonnes per annum (mtpa), is projected to grow to 200 mtpa by 2020, calling for an investment of  $110 billion in the next six-seven years.

SAIL Chairman C S Verma had earlier said India needs to put in place a funding agency only for the steel sector, on the lines of Power Finance Corporation (PFC). "We don't have a specific bank or institution for steel sector and almost every bank has reached the maximum exposure limit for the sector. Now, there is so much funding required. Where do we get the money?" Mr Verma had said.

The working group on steel industry for the 12th Five Year Plan, which pegged Rs 2.5 lakh crore investment in the sector up to 2017 for adding 60 mtpa capacity, had also raised concerns about the means of funding in the sector.

"Government may also consider easing of norms connected with external borrowings. Special purpose long-term financing facility may be created to finance huge investment in new steel plants," it had said.