Tata Steel arranges $6.6bln loan to build a new Indian Steel plant

MUMBAI (Scrap Monster): Tata Steel Limited (BSE: 500470) has earned a $6.6 billion loan from Indian banks to fund new steel plant’s construction in eastern India.

The company had $9.3 billion in net debt on June 30th and most part of the debt had been taken 6 years ago when it acquired Corus, the current Tata Steel Europe.

While Tata Steel’s Europe unit faced weak financial performance over the past few quarters due to economic troubles in Europe, Tata Steel’s Indian operations have been growing at a fast path.

Now, Tata Steel operates a plant in eastern India with a capacity of 10 million tons a year. The new raised funding is for its second plant which is also building in the eastern India with planned production capacity of 6 million tons a year.

Tata is the twelfth-largest steel producing company in the world, with an annual crude steel capacity of 23.5 million tons, and the largest private-sector steel company in India measured by domestic production.