OREANDA-NEWS. March 22, 2011. Sesa Goa Limited ("SGL" or the "Company") announces that it has acquired the assets of the upcoming Steel Plant Unit of Bellary Steel & Alloys Limited ("BSAL") for an all cash consideration of ? 220.00 Crore.

The secured creditors to BSAL represented by IFCI Ltd had taken over possession of the properties of BSAL in association with the official liquidator. IFCI Ltd then conducted a sale process for the assets of BSAL under the SARFAESI Act, 2002.

BSAL was in the process of putting up a 0.5 mtpa Steel Plant Project at Bellary. The properties of the under construction plant acquired are free hold land of ~700 acres, building and structures, plant and machinery and other assets of the Steel Plant. The Assets have been transferred on an "As is where is" Basis to SGL as of 22 March 2011.

The Company is presently conducting a detailed assessment in order to determine the best way forward for commissioning the steel plant at the earliest.

Strategic Rationale

Located in iron ore rich belt in the State of Karnataka.

This asset provides the Company with an exceptional opportunity to expeditiously set up a value addition facility, with approx. 700 acres of freehold land.

The project is in close proximity of national highway, railway and source of water

"We have been looking at setting up value addition facilities, as desired by the State Government, and this acquisition provides us with an excellent opportunity to leap frog ahead in that direction. This acquisition also substantiates our firm commitment towards Karnataka." said Mr Mukherjee, Managing Director, Sesa Goa Limited