The next major expansion of Tata Steel, after the installation of its 1.2 million tonne cold-rolling facility, is likely to take place through the inorganic route of acquisition, according to sources close to Bombay House.
In view of this, the next two to three years become very crucial for the company. This period is likely to see major changes both in the public and private sector of the steel industry.
Wide-ranging disinvestment is slated to take place in the entire public sector and the steel industry is no exception.
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Of all the public sector units which can come up for disinvestment, Tata Steel, sources indicated, would be most keen on the Vishakapatnam-based Rashtriya Ispat Nigam Ltd.
Chief minister Chandrababu Naidu is currently opposed to any change in the status of the Vizag steel plant but both attitudes and political equations are not set in stone.
As disinvestment gathers momentum, it will be increasingly difficult for anyone to oppose individual instances of disinvestment unless there is a sound economic reason for it.
As for the private sector, the latest legal changes have given public sector banks extensive new powers to dispose of non-performing assets. In this situation the chances of loss making steel plants going on in a