Shyam Steel acquires major stake in Beekay Steel

Kolkata headquartered Shyam Steel Industries has acquired major shares in Beekay Steel for an undisclosed amount.

Beekay owns a steel plant in Barbil, Orissa and a standing MoU with the state government for production of 0.28 million tpa of steel at the facility.

As per sources, Shyam Steel is likely to invest Rs 365 crore in the plant by 2012 along with a 40 MW captive power plant, capacity expansion of DRI (sponge iron) to 0.1 million tpa, billet to 0.1 million tpa and establishment of a coal washery.

Besides, the company plans to pump in Rs 1,000 crore for a two million-tonne beneficiation and pelletisation plant in Sundergarh of Orissa. The plant will have a 50 MW captive power plant. The project has got approval from the Single Window Authority of the state. The work on the project will commence as soon as the MoEF clearance is obtained.