Ferro Alloys to invest Rs 100 crore in Facor Power

NEW DELHI: Ferro Alloys on Tuesday said it will invest Rs 100 crore in subsidiary Facor Power Ltd to part- finance a Rs 570 crore power project in Orissa.

The leading ferro alloys manufacturer will seek shareholders' approval for raising the sum.

"... The board of directors of the company, at its meeting held on August 10, inter-alia, decided to seek approval of shareholders of the company to invest a further sum of Rs 100 crore by way of subscription, purchase, acquisition from existing shareholders or otherwise, in one or more tranches, in share capital of Facor Power," it said in a filing to the BSE.

Facor Power is setting up a 100-MW unit in Orissa at an estimated investment of Rs 570 crore.

"For the first phase of the 2x50 MW project, the company has already raised a debt of Rs 140 crore from Rural Electrification Corporation Limited. The promoters had also infused Rs 75 crore," a person in-the-know of the development said.

The first unit of the facility is scheduled to be commissioned by December 31, 2010, and the second unit could go onstream by June 30, 2011, the official said.