Ispat Industries Ltd has planned to spend Rs 2,600 crore on various expansion projects in the next two years. The proposed expansion projects include development of a coke oven plant, a two million tonne iron ore pellet project, 110 MW captive power plants at Dolvi steel complex and an iron ore mining project at Damkodwadi in Maharashtra.

Ispat has decided to develop a one million tonne coke oven plant in a joint venture with the UK firm, Stemcore. The estimated cost of the project is about Rs 1,100 crore, and the company is expecting to finalize the financial details by November.

The two million tonne iron ore pellect project will cost around Rs 600 crore and will be partnered by some Indian company.

Mr. Pramod Mittal, chairman Ispat Industries, on Wednesday after the company's annual general meeting in Mumbai, said that the company would spend an estimated Rs 480 crore on the captive power units, around Rs 1,100 crore on the coke oven plan, another Rs 400 crore on the mining operations and about Rs 600 crore on the pellet plant. He added that all the projects would get started in the next two years.

The company is expecting its EBITA margin to increase to 35 per cent of the sales at the completion of the projects.

Mittal said that the company’s tie-ups in Brazil are for iron-ore mining while partnerships in Mozambique and Columbia are for coal mining projects. (dpa)