Tata Steel to invest up to Rs 55,000 cr in Jharkhand

Prospective sites for Tata Steel's second 10 million-tonne- per-annum capacity steel plant has finally narrowed down to Chandil or Manoharpur in West Singhbhum district of Jharkhand.

Officials in the Jharkhand government maintain that Tata Steel, which plans to invest Rs 45,000-55,000 crore in two phases spread over nine years, is eyeing a site at either of the two places.

For the past few weeks, the two places are said to have hosted an unusually high number of Tata Steel executives. "The company has decided to set up the steel plant in Manoharpur or Chandil," said an official.

A Tata Steel spokesperson refused to comment on the development, saying that details will be known as and when the Memorandum of Understanding (MoU) is signed between the state government and the company.

The Jharkhand government has already shown an interest in setting up a 10,000 acre steel industries park at Chandil.

Manoharpur is about 150 kilometres from Jamshedpur. The region is known to have rich iron ore deposits.

'With closer proximity to iron ore mines, the steel plant has the advantage of reducing its transportation costs,' said a mining expert.

Tata Steel already has captive iron ore mines at Noamundi, Joda and Khondbond.

Inspection of the sites has already been completed by Tata Steel team, led by RP Singh, projects vice-president.

The feasibility study was commissioned to consultancy firm MN Dastoor & Company.