Pig iron producer Tata Metaliks is eyeing a 3-5 million tonne steel plant in Karnataka, depending on the feasibility, said H M Nerurkar, chairman, on the sidelines of the company’s annual general meeting.
The company is looking at a 900 acre allotment, whenever it comes. Harsh K Jha, managing director, said 900 acres would be absolutely fine for a 3 mt unit and 5 mt was also not impossible. The land allotment is yet to happen. However, the company is not making any major investments this year. Nerurakar said, “With this balance-sheet we cannot do anything. Next year, once the company turns around, we will see.”
For the year ended March 31, 2009, Tata Metaliks posted a loss after tax of Rs 148.7 crore. It is raising the authorised share capital from Rs 40 crore to 100 crore. Nerurkar said, in an enabling resolution.
The company had planned a unit in West Bengal, but the state government could not acquire land for the project. This was despite an assurance made in February 2005 by the chief minister. Today, Jha today said Bengal was a closed chapter. The company had started pursuing West Bengal and Karnataka at the same time, but decided to focus on Karnataka after the former failed to allot the land.
Tata Metaliks is increasingly focusing on value addition and diversification into steelmaking, Jha said.
Earlier this year, the ductile iron pipe plant of Tata Metaliks Kubota Pipes Limited at Kharagpur in West Bengal was inaugurated. This is a joint venture of Tata Metaliks, Kubota Corporation and Metal One Corporation of Japan.