Seshasayee Paper gets board’s nod to fund expansion project in TN

Seshasayee Paper & Board Ltd has received nod of its board of directors for funding of Mill Development Plan – III (MDP – III) at Erode unit in Tamil Nadu.

This will be done with a debt of 30 per cent of the estimated Net Capital Cost of the Project. According to an Equity Bulls report, Net Capital Cost is estimated at Rs 275 crore, that is, Total Project Cost of Rs 315 crore Less: Estimated Input Credit of Rs 40 crore.

It further said Debt Component accordingly represents Rs 82.50 crore out of the Project Cost and balance will be funded by Internal Accruals.

“The said borrowing, inclusive of existing Outstanding of Term Loan, is well within the overall borrowing powers approved by the shareholders of the Company,” added the report.

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