Calcutta, March 28 (PTI): Jindal Stainless Limited (JSL), the over $417-million flagship company of the Jindal group, has decided to set up a new plant at Duburi in Orissa and also upgrade its existing project at Hisar in Haryana with a total expenditure of Rs 1,243 crore.

The greenfield project at Duburi was aimed at getting easy access to raw material and enhance its ability as a cost competitive producer of stainless steel. A proposal to this effect was considered and approved by the board of directors, senior vice-president A. P. Garg said.

JSL has a 500,000 TPA capacity stainless-steel plant at Hisar and high carbon ferro chrome plant at Vishakhapatnam in Andhra Pradesh.

Giving details, Garg said Rs 950 crore would be spent on the Duburi plant, while Rs 293 crore would be spent on upgradation of the existing project at Hisar. Both the projects would be funded through various resources, including internal accruals.

To part finance the projects, JSL has decided to raise $100 million (Rs 450 crore) through external commercial borrowing.

The proceeds from the ECB would also be utilised for general corporate purpose, capital expenditure and long-term working capital requirements, he said.

The plant in Orissa will have a capacity to produce 150,000 TPA ferro chrome, 30,000 TPA ferro manganese, 60,000 TPA silico manganese and 3,00,000 TPA coke oven battery, Garg said.

Talking about upgradation of the Hisar plant, he said the capacity of stackel mill will increase from 4,00,000 TPA to 5,00,000 TPA, steel melting to 5,50,000 TPA from 5,00,000 TPA and cold-rolled strips to 1,50,000 TPA from 90,000 TPA at present.

“The entire Rs 293 crore expenditure towards upgradation of the plant would be incurred during the next fiscal,” he said.