The Essar group is planning to procure capital goods from China worth $5 billion
in the next three years to execute various projects in steel, power, telecom,
shipping and construction.
proposes to source the goods through Global Supplies (UAE) FZE, a subsidiary of
Essar Global Ltd (EGL), which is setting up a new office in Beijing.
will use our office in Beijing to be a global sourcing base to procure capital
goods required for our steel, energy, power, communications, shipping, telecommunications
and construction businesses," Essar Global chairman Shashi Ruia said.
Essar group has finalised an investment plan of over $16 billion over the next
four years in capacity enhancement and technological upgrades in various businesses.
These projects involve over $11 billion spending on capital goods.
Power Holdings Ltd is expanding its capacity from the present 1,200 MW to 4,800
MW, for which $2 billion worth of capital equipment is required. Essar Energy
Holdings Ltd plans to expand its capacity from 10.50 million tonnes per annum
(mtpa) to 32 mtpa, which will require another $2 billion worth of capital machinery.
rest $1 billion worth of capital equipment from China is required for Essar Steel
Holdings Ltd, which is expanding its capacity from 8.6 mtpa to 23.5 mtpa.