India's Lloyds Metal and Energy Limited (LMEL) has approved investments totaling $351 million in captive thermal power and renewable energy projects to supply electricity to its steel and mining operations in the western state of Maharashtra, company sources said on Tuesday, November 10.
The company will set up a 360 MW thermal power plant comprising two 180 MW units at Konsari in Maharashtra.
The thermal power plant is expected to be completed by March 2029, subject to regulatory and statutory approvals. The project is proposed to be financed through a mix of debt and equity, including internal accruals, as determined by the company, sources said.
The company has also approved investments to acquire a 30 percent equity stake in renewable energy projects that will provide at least 168 MW of power. This is in line with its focus on sustainability and renewable energy sources, as well as its long-term operational and energy requirements.
The board of directors of LMEL has also approved raising funds through the issuance of US dollar-denominated senior secured or unsecured floating-rate or fixed-rate notes, bonds, debentures or other debt securities. The issuance may be carried out in one or more tranches for an aggregate principal amount of up to $300 million, subject to all applicable regulatory and statutory approvals.
LMEL is engaged in iron ore mining, direct reduced iron (DRI) production, and power generation, operating across three business segments: sponge iron, mining, and power generation in Maharashtra.
