Is Tata Steel greenfield project in Iran on hold?

Amid reports that it has put its three million tonnes greenfield project in Iran on hold, Tata Steel today said that it was working on "some issues" pertaining to the undertaking.

The reports attributed the decision to put the project on hold to political uncertainty and larger geopolitical concerns. Earlier, Essar Group had dropped plans to develop an oil refinery in the Persian Gulf nation.

"Tata Steel has put its 3 million tonne a year greenfield steel project in Iran on hold because of political uncertainty. The decision has been made for reasons not related to business, but larger geopolitical concerns," the Metal Bulletin (MB) reported, quoting a Tata Steel executive.

Activities on the Iran project have been at a complete standstill for two months, according to Iranian industry sources.

When contacted, a Tata Steel spokesperson said, "The process is on. There are some issues which are being worked out."

After Essar, Tata Steel has become the second company to put investment plans on hold in Iran.

Tata Steel signed a memorandum of understanding (MoU) with the Persian Gulf Special Economic Zone last year for land and other infrastructural facilities in the SEZ at Bandar Abbas, the Metal Bulletin said.

Under the MoU, Tata had agreed to set up a direct reduced iron-based steel plant with an annual capacity of 3 million tonnes and this could be scaled upto 5 MT.

"The Iranian project was supposed to be owned by a Tata Steel subsidiary, with the entire production targetting the export market," Metal Bulletin added.

When contacted, a Tata Steel spokesperson said, "The process is on. There are some issues which are being worked out."

After Essar, Tata Steel has become the second company to put investment plans on hold in Iran.

Tata Steel signed a memorandum of understanding (MoU) with the Persian Gulf Special Economic Zone last year for land and other infrastructural facilities in the SEZ at Bandar Abbas, the Metal Bulletin said.

Under the MoU, Tata had agreed to set up a direct reduced iron-based steel plant with an annual capacity of 3 million tonnes and this could be scaled upto 5 MT.

"The Iranian project was supposed to be owned by a Tata Steel subsidiary, with the entire production targetting the export market," Metal Bulletin added.