INDIA BUSINESS WORLD - March 1st - March 15th - 2008
HEG STEEL UNIT'S MERGER WITH JAI BALAJI COMPLETED
JAI Balaji Industries has completed the merger of the steel division of HEG Ltd at Chhattisgarh with itself, according to a Jai Balaji Group media statement.
"Shareholders have approved the scheme of arrangement of transfer of the steel unit of HEG Ltd to Jai Balaji Industries," an official from the Jai Balaji Group said.
In 2007, the company had acquired the steel division of HEG Ltd consisting of a sponge iron plant, steel melting shop division and a power plant in Chhattishgarh, subject to completion of necessary legal formalities.
Incidentally, Jai Balaji Industries has also acquired ownership control over Nilachal Iron & Power Ltd, a sponge manufacturing company in Jharkhand. Additionally, it has firmed up plans to set up a power plant, a coke oven plant, a pellet plant, a tubes and pipes plant, a ferro alloys and rolling mills at an investment of Rs 1,055 crore.
It has also signed an MoU with the West Bengal government for setting up a 5 million tonne steel plant, a 3 million tonne cement plant and 1,215 mw captive power plant near Purulia for a total investment of Rs 16,000 crore. This will usher in a new era for the company, as it will make the group a leading steel producer in the country.
Citi Venture Capital International and Hudson Equity Holdings Limited have invested Rs 273.25 crore in the company.
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