Tata Steel scales up output to 25 mt

Tata Steel has increased its production target to 25 million tonne, through a mix of organic and inorganic options.

In a speech made by Tata Steel's managing director on Independence Day, B Muthuraman said the set of ambitious plans being chalked out by the company would take it to 15 million tonne by 2010 and 25 million tonne by 2015.

He also revealed that the company was eyeing a second overseas acquisition in South-East Asia during the course of the year and would continue to look at further acquisitions.

In August 2004, the company acquired 100 per cent equity of NatSteel Asia with assets in Singapore, Malaysia, Thailand, Vietnam, Phillipines, Australia and China. NatSteel has a capacity of two million tonne.

Muthuraman further said in his speech that the company would have a meaningful presence beyond the shores of India.Tata Steel has already lined up projects in Iran and Bangladesh.

Back home, Tata Steel would adopt the organic route. Muthuraman said, the expansion of Jamshedpur to seven million tonne is ongoing and would be completed by 2008.

Thereafter, Jamshedpur Works would be expanded to 10 million tonne. At present, capacity of Jamshedpur was at five million tonne and another two million tonne had been approved. The expansion of Jamshedpur to 7 million tonne was ongoing and would be completed by 2008.

Muthuraman said, it looked that the long pending issue of the Jamshedpur land lease would be resolved very soon and with this important step, Jamshedpur could look forward to more progress and a better quality of life.

The company has asked the Jharkhand government to provide with adequate iron ore reserves for the 10 million tonne. Greenfield projects were lined up for Kalinganagar in Orissa and Bastar in Chhattisgarh.

Muthuraman also pointed out that Indian reserves of iron ore, though at 18-20 billion tonne, was not adequate for India when it reaches levels of steel consumption to 300 kg per person per year and any policy or decision to export iron ore from the country by any kind of arrangement would be against the national interest.

He added, while taking decisions on foreign investment it was important that state governments and the central government ensured mineral reserves of India, specially iron ore, was not exported out of India.