TATA Steel, India’s largest steelmaker, will continue with its Rs 27,000-crore plan to expand capacity at Jamshedpur and build a new plant at Orissa, while it will push back other capex plans and greenfield units at Jharkhand and Chattisgarh due to the liquidity crisis and slow demand.
Tata Steel is planning to expand its Jamshedpur capacity by 3 MT to 10 MT by 2010, at an estimated cost of Rs 12,000 crore. It also has plans to build a 3-MT plant at Kalinganagar in Orissa at Rs 15,000 crore. The Orissa unit would be the first phase of a 6-MT plant. The financing for these two projects has been completed and land has also been acquired in Orissa. The liquidity crisis and slow demand has, however, prompted the company to push back its other plans that includes its units in south-east Asia and Europe.