Tata Metaliks likely to set up 3 mt steel plant in State

Tata Metaliks likely to set up 3 mt steel plant in State

The company is in an advanced stage of negotiation with the State government for allotment of 900 acres. “900 acres will be quite fine for a 3 million tonne unit and even 5 mt will not be impossible either,” sources said. While talks are on for final allocation of land, TML has been finetuning plans for investment next year.

Karnataka Minister for Large & Medium Scale Industries Murugesh R Nirani, confirmed that the State has agreed in principle to provide the required land and that preliminary approval for the project has been granted.

However, Nirani refused to comment on the prospects of availability of mining licence for the Kolkata-based firm, stating “all I can say is they have got initial approval for their project, other things come under the purview of mining and forestry department and it is only apt for its representatives to comment.” Meanwhile, the company has said it cannot think of further investments this year, as their balance-sheet was weak. “We cannot do anything this year. Next year, once the company turns around, we will consider” the chairman was understood to have said. TML posted a loss (after tax) of Rs 148. 7 crore for year ended March 31, 2009 and raising the authorised share capital from Rs 40 crore to 100 crore.

According to him, the Karnataka steel project hinges critically on availability of iron ore mines. For a 3 mt unit, the ore required would be around 250-300 million tonnes per annum.
TML, which had earlier planned a unit in West Bengal, had to abandon it in the wake of the failure of the state authorities in acquiring required land for the project. The assurance was given as early as in February, 2005. Managing Director Harsh K Jha made it clear that Bengal was a closed chapter. Earlier this year, the ductile iron pipe plant of Tata Metaliks Kubota Pipes Limited at Kharagpur in West Bengal was inaugurated. This is a joint venture of Tata Metaliks, Kubota Corporation and Metal One Corporation of Japan.

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