Mumbai: Infrastructure firm Jaiprakash Associates has acquired Jagdishpur, Uttar Pradesh-based Malvika Steel for Rs207 crore, thereby entering the steel sector.

The acquisition of the Usha Group-promoted Malvika Steel was made in an open auction made by the Debt Recovery Tribunal. The steel firm was taken over by some financial institutions after it failed to meet its interest obligations.

Jaiprakash would pump in Rs800 crore and Rs 1,000 crore in two phases. The amount would be funded through a mix of debt and internal accruals, Jaiprakash Associates executive chairman Manoj Gaur said.

"We will put in Rs1,800 crore over next 26-28 months to make it one million tonne integrated steel plant,'''' Gaur said.