Hyderabad, Jan 13 (IANS): Steel Exchange India Limited (SEIL), a part of the Vizag Profiles Group, will invest Rs.7,937 crore to expand its steel plan in Hyderabad.

The capacity of the plant located in Sreerampuram village in Vizianagaram district will be increased from 0.25 million tonnes per annum to 1.25 million tonnes.

A memorandum of understanding (MoU) in this regard was signed by the Bombay Stock Exchange listed company with the government of Andhra Pradesh during the 22nd CII Partnership Summit which concluded in Visakhapatnam on Tuesday.

According to a company statement issued here on Wednesday, the investment will be made in two phases and this is expected to generate 1,500 new jobs.

The MoU was signed by SEIL chairman and managing director Bandi Satish Kumar and director of industries of the Andhra Pradesh government Kartikeya Misra.

Vizag Profiles, the flagship company of the group, also committed to direct investment to Andhra Pradesh for setting up of warehouses and cold chain warehouse in coastal areas. This will involve an investment of about Rs.500 crore which is expected to create 400 new jobs.