Summary of Proposed Investment
Project Number
7585
Company Name
Ispat Industries Limited
Date SPI Disclosed
May 22, 1996
Country
India
Industry
Manufacturing
Status
Completed
Sector
Integrated Steel Works
Department
Regional Industry - MAS Asia & Pac
Environmental Category
B - Limited
Previous Events
Approved : Aug 21, 1996
Signed : Oct 9, 1996
Invested : Jun 5, 1997
Project Description
Summary Of Project Information (SPI)
| Project Name | India-Nippon Denro Ispat Limited (NDIL)Steel Plant Expansion |
| Region | Asia |
| Sector |
Projected Board DateJune 30, 1996
Company NameNippon Denro Ispat Limited (NDIL)
Technical Partner and/or Major Shareholders
Nippon Denro Ispat Ltd. is an Indian company which is controlled by the Ispat Group and is the flagship company of the Ispat Group in India. The Group is owned by the Mittal family and its operations started in Indonesia in the early 1970’s. From there the Group moved back to India, establishing NDIL in 1985, and into Trinidad, Mexico and more recently Canada and Germany. The Ispat Group taken as a whole is the world’s largest producer of sponge iron and is a major player in electric arc furnace steel making. The Indian and International operations of the Group are now organised separately.
Project Cost Including proposed IFC investment
The additional cost of the expansion is $630 million which, added to the original project cost of $790 million, brings the total project cost to $1420 million. In 1994, IFC approved investments in the original 1.2 mtpa steel plant consisting of an A loan of $30 million, a B loan of $60 million and authority to invest up to $6 million in equity. IFC’s proposed additional investment for the expansion project consists of an A loan of $15 million, a B loan of $30 million and additional equity of $6 million in the Company.
Location of project and Description of site
The project site is located at Alibag approximately 30km from Bombay. It is immediately adjacent to NDIL’s sponge iron plant, which was part financed by IFC and which is now in operation. The project is located near many of the project''s potential customers. Nearly half of the cold rolling steel mills are located in Maharashtra State; and cold rolling mills themselves account for about half of all hot rolled coil steel consumption in India.
Description of Company and Purpose of Project
NDIL plans to increase the scope of the Hot Rolled Coil steel project by increasing the plant’s capacity from 1.2 million tpa to 3 million tpa with the addition of a captive power plant. The project will use state-of-the-art steel production technology to enhance the competitive position of this plant as a leader in steel making efficiency and quality, with consequent benefits for the quality of the industry and of industrial consumers of steel in India.
Environmental Category and Issues
This is a category B project according to IFC''s environmental review procedure. Environmental issues associated with this project include fulfilling of existing environmental commitments to IFC, cumulative air emissions from the steel plant and the power plant, and liquid effluents. Occupational health and safety issues include employee exposure to noise and dust.
A full environmental assessment has been prepared for the expansion project. Air emissions will be kept well within World Bank guidelines, and an initial review of the cumulative ambient air quality with the expansion confirms that local requirements and World Bank guidelines will be met. Wastewater will be treated at the facility and used internally for irrigation. Noise levels both ambient and within the plant will comply with local requirements and World Bank guidelines. The facility will apply for ISO 14001 environmental certification upon completion of construction.
The is from the Public Information Center.
| Date SPI sent to PIC | May 22, 1996 |
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 676-0365
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).
Sponsor / Cost / Location
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