The board of Tata Steel Ltd is likely to approve the launch of its jumbo Rs 259 bn ($4.75 bn) project financing deal on Friday.
The board meets on November 9 and may also decide if the deal needs to be launched in phases.
According to sources, the company is considering splitting the financing into halves to match the construction phases of the steel plant.
Proceeds will be used to fund a 6m tonnes per annum greenfield steel plant. The deal is likely to be launched into syndication after Diwali (November 13), sources said.
Tata has already invested Rs50bn in the project, which has a total cost of Rs370bn. The steel plant is being built at Kalinganagar in the eastern Indian state of Odisha, formerly known as Orissa.
The 13- to 14-year financing has been mandated to SBI Capital Markets.
Bankers said the recent decision by the Odisha government to impose a fine of over US$1bn on the company would not impact on the deal. The fine has allegedly been imposed for over using the iron ore mines which supply raw material to the company's existing steel plant at Jamshedpur.
The company will appeal the state government's decision and has denied any illegal mining, according to media reports. The new financing will be the largest project financing in the current financial year.
State Bank of India has already committed Rs90bn to the financing. The deal was sounded in the market in September in the 10.75% to 11.50% range.