New Delhi, Dec 28: JSW Steel Ltd today said it will invest 49 per cent or 6.86 million dollars to form a Joint Venture (JV) Steel Plant with Georgia-based Geo Steel LLC (GSL) to manufacture TMT Bars (Rebars).

The JV will look to cater to the growing needs of the construction industry in Eastern European countries mainly in Georgia, Armenia, Azerbaijan, Russia and former CIS Countries.

The board of JSW has considered and approved the proposal to invest in GSL, to the extent of 49 per cent of equity, to set up a Steel Rolling Mill facility in Georgia initially with a capacity of 175,000 ton per annum (tpa) Rebars.

The estimated project cost of 42 million dollars is proposed to be financed by way of debt of 28 million dollars and the balance through equity of 14 million dollars.

Out of the total equity capital of 14 million dollars required for setting up of the project, 6.86 million dollars will be invested by JSW Steel Ltd through its wholly owned subsidiary JSW Steel (Netherlands) B V.

The remaining 51 per cent equity or 7.14 million dollars will be held by GSL.

JSW Steel (Netherlands) B V, will also be extending support and assistance for successful implementation and continued operation of the project.

UNI