A part of the Rs 300 crore Gangotri group, Gangotri Iron and Steel, which manufactures steel bars, will also foray into malls and infrastructure development projects in eastern India. It would develop its first shopping mall-cum-multiplex project at Bailey Road, Patna.

A five-star, 120-room deluxe hotel will be an integral part of the project.

In the 6 lakh sq ft project, 4 lakh sq ft will be leased out to leading Indian and international brands for showrooms and 2 lakh sq ft would be sold outright.

Gangotri Iron is expecting an increase in income of Rs 300 crore through outright sale and Rs 50 crore per annum by way of lease.

It is also developing two residential projects in Patna and one in Kolkata.

Nippon Steel has recently received an order for 20,000 tonnes of high grade rails from Delhi Metro Railway Corp (DMRC) for expanding the main subway network in Delhi. The deal, channelled through Mitsui & Co, is Nippon Steel's first involvement in the export of rails to India.

Gangotri Iron has also acquired 14 acres of land to set up a fully integrated steel plant with a capital outlay of Rs 60 crore in Bihar.

The plant will manufacture 1,20,000 MT Thermex TMT Bars per annum and wire rods. The plant is expected to commence its trial production by December 2007.

Globally, growth in steel consumption has a high correlation with GDP growth.

With the Indian economy likely to grow around 8-10 per cent per annum, demand for steel is expected to remain strong. It is projected to reach 60 million tonnes by 2010-11 and 90 million tonnes by 2019-20 as envisaged in the National Steel Policy 2005, considering a growth of 6.9 per cent over the next 15 years.