Ispat Industries MoU with MP Trade

Ispat Industries Ltd has informed that the Company has entered into a Memorandum of Understanding (MOU), on October 27, 2007, with M P Trade & Investment Facilitation Corporation Ltd, a wholly owned undertaking of Government of Madhya Pradesh. In terms of the MOU, upon allotment of coal block, the Company intends to make a total investment of about Rs 1,500 Crores through a Special Purpose Vehicle (SPV) Company, to be formed at an appropriate time, for setting-up the following facilities in the State of Madhya Pradesh:

i) Coke oven Battery Plant of 1 Million MT per annum;

ii) Coal Washery and beneficiation Plant of 1.05 Million MT per annum; and

iii) Pit Head Power Plant of 150 MW.

Setting-up of the aforesaid facilities would entail employment to about 500 persons.

The implementation of the MOU would be taken up by us after obtaining all requisite approvals.