Megha plans to raise Rs 20k cr for expansion

Sonamarg (Jammu and Kashmir): PV Krishna Reddy, Managing Director, Megha Engineering And Infrastructures Ltd (MEIL), said that his company would raise Rs20,000 crore over next two year to meet its diversification, expansion needs.

"We are planning to raise Rs15,000 to Rs 20,000 crore for disinvestment projects. This will be raised through debt," Krishna Reddy told Bizz Buzz. The company will mainly use these funds to invest in the public-sector units (PSUs), in which the Centre is divesting stake.

According to him, MEIL has been qualified in technical bids for the disinvestment programme of BEML, Odisha-based Neelachal Ispat Nigam Ltd (NINL), and Shipping Corporation of India. MEIL is the only company qualified in the disinvestment programme of Shipping Corporation.

"We will use the funds that we are going to raise, for these disinvestments. Though we have operations in 20 countries, our aim is to invest more and more in India. India is our first priority," he said.

He, however, said that the company had not yet started discussions with financial institutions for its massive debt raising plans. On the company's initial public offering (IPO) plans, he said the company has not yet decided on it.

"We are comfortable now when it comes to funds. We may decide on the IPO after one or one and a half year later", Reddy said. On challenging Zojila tunnel project, he said it would be completed ahead of schedule.

"You will see it," he said, adding that MEIL has a lot of experience in tunnel projects. "We completed 100-150 km of tunnel projects in various places. Now, we are doing a tunnel project in Uttarakhand also," he said.

Reddy said the infrastructure major would soon enter the hydrogen sector as well. "Now, everyone is talking about hydrogen. We just signed a memorandum of understanding with an Italian company for hydrogen," he said.