Usha Martin Ltd has today announced that it has increase its spending by Rs 850 crore to Rs 2100 crore for its expansion project.

The approval has been given by the board of directors of Usha Martin, during its meeting held on Nov. 13, 2007

With the help of additional amount, the company has planned to set up a mineral beneficiation plant and a pellet plant to optimize the utilization of its mineral resources.

The company produces minerals, specialty steel, and is one of the largest wire rope manufacturers globally.

The company stated that the incremental expenditure of Rs. 850 crore would be part funded by infusion of additional equity of Rs. 335 crore by way of preferential allotment of warrants to promoters at Rs. 87 per share (face value of Re. 1 per share) over the next 18 months subject to requisite approval.

Usha Martin also has plans to expand the capacity of captive power for its steel plant at Jamshedpur and wire rope plant at Ranchi, both in Jharkhand, so that they are self-sufficient in electricity requirements.

The balance would be funded through combination of debts and internal accruals.

Its stock closes today at Rs. 103.90 on NSE, up by 4.16% from the previous close of Rs. 99.75. It touched intraday high of Rs. 109.95 and low of Rs. 100.10.