SAIL plans to raise $400 mn from overseas lenders

New Delhi : After failing to launch the initial public offer so far, state-run Steel Authority of India (SAIL) now plans to borrow $400 million from overseas lenders to part-finance its expansion and modernisation plans. "The company has sought expression of interests from overseas lenders to raise $400 million through external commercial borrowings (ECBs)," a source in the know said.

The source said the fund would be used to finance SAIL's modernisation and expansion plans. The Maharatna company has already embarked on a Rs 70,000 crore capacity expansion plan to take its domestic production to 23.46 million tonne per annum by 2012—13 from 14.35 million tonne at present. It has Rs 14,337 crore capital expenditure plan for the current fiscal.