Tata Steel's domestic manufacturing capacity is set to jump three-fold to 21 MTPA following the expansion at its Jamshedpur facility and as the Orissa and Chhatisgarh greenfield units go operational. Tata Steel's current manufacturing capacity stands at 7MTPA.
"After completion of the 3-mt expansion project at Jamshedpur, the company's steel manufacturing capacity in Indian operations will enhance to 10 mtpa by 2012," Tata Steel's chairman Ratan Tata said at the annual general meeting in Mumbai.
The company is also in the process of setting up greenfield plants at Kalinganagar in Orissa and Bastar in Chhattisgarh of 6MTPA and 5MTPA capacities respectively.
"We are in the process of placing orders for equipment for our 6-mt greenfield steel plant in Orissa, which is expected to be on ground in 3-4 years," Tata said. The plant is being set up in two phases. The company is currently focusing on land acquisition, rehabilitation and resettlement of people, he said. As per the MoU signed with the Orissa government, Tata Steel has placed orders for equipment and services.
The company will also set up a 5MTPA steel plant in Chhatisgarh for which it has signed an MOU with the Chhattisgarh government. The process of land acquisition for the project has commenced with multi-level discussions with stakeholders.
The company plans to invest Rs4,500 crore this fiscal, which is to be followed by Rs7,000 crore in 2011-12 for projects. The company has not made such investments in the past 15-20 years.