Visa Steel applies for mining leases in Orissa,Chhattisgarh

In an interview with CNBC-TV18, Vishambhar Saran, Chairman of Visa Steel spoke about the latest happenings in his company and the road ahead.

Below is a verbatim transcript of the interview. Also watch the video.

Q: Any reason why your stock is excited this morning. Have you received any news like getting the mining lease in Orissa or something?

A: We have been expecting mining lease both in Orissa and Chhattisgarh for a while and we have repeated assurance from both the governments that they are processing it in priority because among the plant who have crossed the threshold investments, we are one of the few who do not have a lease as yet. So it should be coming anytime.

Q: We understand that company has met the expenditure requirements that the government had setout. So now what is the next step? When does the government officially inform you if indeed you got the mining lease?

A: It should be happening anytime because they have short listed us for few areas wherever we have applied and they have completed the gearing of other applicants and they have put us on the top. So now it’s just a question when they move the paper from Bhubaneshwar to Delhi or from Raipur to Delhi.

Q: On which one are you more hopeful right now between Orissa and Chhattisgarh?

A: At the moment both are running parallel. Our investment threshold is better qualified in Orissa. Chhattisgarh also, we have now made substantial progress and in Chhattisgarh the competition is relatively less because all the existing steel plant already have full requirement of their lease.

Q: Your new unit in Chhattisgarh would require some funding as well. Is there any new plan of raising capital over the next two-three months?

A: We are not having any plans in next two-three months. We will have it towards the end of financial year of maybe beginning of the next financial year.

Q: Will it be equity capital?