Mumbai, Dec 19 : Tata Steel on Tuesday said its board has approved expansion of Kalinganagar plant's capacity by five million tonnes per annum at an estimated investment of Rs 23,500 crore and this is expected to be completed within 48 months.
"Following the successful implementation of the phase 1 of the Kalinganagar project in Odisha, the board today (Tuesday) approved the next phase of expansion of capacity in Kalinganagar by 5 million tonnes per annum from 3 million tonne per annum (Mtpa) to 8 mtpa," the steel maker said in a regulatory filing.
The total capacity of the steel maker's India operations will be 18 million tonnes per annum after the proposed expansion.
"The project will cost the company Rs 23,500 crore and will be completed within 48 months," the filing said.
According to the company, its board reviewed the financial strategy in the light of the organic and inorganic growth strategy of the company and approved the financial plan to raise capital for the expansion project.
"The board approved the issuance of equity and equity linked instruments including ordinary shares of the company by way of a rights issue to the existing shareholders of the company on the record date for an amount of not exceeding Rs 12,800 crore in accordance with the SEBI regulations.." it said.
The steel maker said the expansion would be made in order to meet the requirements of automotive, general engineering and other value added segments.