Non-ferrous metals giant Vedanta Resources said that the company has plans to foray into steel sector by setting up a 10 million tonne steel plant in Orissa. The current plans are to invest Rs 50,000 crore to ramp up its mining and metals production capacity during the year.

Vedanta Resources is planning an IPO for Sterlite Energy, a subsidiary of Sterlite Industries (India) Ltd, in the next few months, said group Chairman.

Anil Agarwal, Chairman, Vedanta Group said, “Our bankers and advisors are working on the same. I cannot give you a specific date but it will come in a few months.”

The company would also consider option to sell shares via pre-IPO placement, he added.

The company has strong fundamentals and good cash reserves. The company is also targeting to acquire copper mines overseas. The company is searching for options in Latin America, Africa and South East Asia for acquisition.

As per official statement Vedanta's unit, Sterlite is currently in discussions to acquire the Indian government's residual stakes in metal firms Hindustan Zinc Ltd and Bharat Aluminium Company Ltd (Balco). If the company manages to get a majority stake in any of these companies, it will help the company to raise its market share quite significantly.

The plant will be set up in two phases of 5 million tonnes in collaboration with a JV partner, which will have a 50% stake in the plant. The JV partner could either be a domestic company or a foreign entity, Mr. Agarwal revealed.