Calcutta, Aug. 22 (PTI): Pramod and V. K. Mittal-promoted Ispat Industries Limited is yet to attain financial closure for the 110-MW power plant project.

In 2001-02, Ispat Industries had planned to set up a power plant through its subsidiary, Ispat Energy Limited, with a capacity of 250 MW consisting of a second-hand plant of two units of 55 MW each and a new unit for the balance capacity to have easy access to cheap power.

However, after discussion with the lenders to the projects, the company had decided to initially implement 110 MW second-hand plant only as this could be set up in a shorter gestation period of 12-14 months and also at a lower capital cost.

Ispat Industries had said it would attain financial closure in the third quarter of 2001-02, but this was extended to the second quarter of 2002-03 and then again to the third quarter of the same fiscal.

However, its 2003-04 annual report said the process of tying up the debt requirement of the project was still in progress.

“Delays have been experienced in achieving financial closure of the project. However, such financial closure is expected to be achieved during 2004-05,” it said, but did not give any reason for the delay.

The company had purchased a second-hand plant located in France from Alstom Power Generation, Germany (formerly ABB) on as-is-where-is basis for the project.