By Accommodation Times News Service
Tata Steel SEZ said it plans to invest about Rs 2,000-2,500 crore for development of infrastructure at Gopalpur in Odisha in the near term
Tata Steel India Managing Director TV Narendran said the first phase of Kalinganagar plant in Odisha is scheduled to start commercial production at the beginning of next financial year, while the second phase ramp up with happen once demand gets better.
The steelmaker has spent more than Rs. 25000crore in the last 10 years to build a 6 million tonne steelmaking plant in Odisha. The commissioning of first phase of 3 mt has faced several delays until date.
Indian steel industry is under tremendous pressure as China, Russia, Japan and South Korea continue to flood the market with cheap steel. Indian government has taken steps to reduce the flow of these imports.
“The engineering work of second phase we started sometime back and whenever we are ready depending on market we will… We didn’t go through all the efforts over 10 years to build just a 3 mt steel plant. I hope the hard part of the work is behind us and then it is up to our affordability to decide how fast we can grow,” said Narendran.
In a recent report commodity pricing agency Platts said India’s ambition to increase annual steel production to 300 million tonne (mt) by 2025 has been thwarted by slower than expected growth in consumption..
“The world would like India not to produce steel as there is enough capacity everywhere but my point is if we are going to solve other countries’ problems who is going to create jobs in India?,” said Narendran
Narendran hopes that Indian government will continue to spend on infrastructure to help boost demand for domestic steelmakers.
He said Tata Steel is looking to steps in upcoming Union Budget to not only ease of doing business in the country but also cost of doing business.