The Hindu Business Line : Tata Steel to enter charter services with bulk carriers

"Much will depend on the future of the joint venture company proposed to be launched in Thailand for undertaking mining of limestone in that country," according to informed sources.

It might be noted that Sheila Energy Inc, a joint venture between Tata Steel and Eastern Energy of Thailand, is being floated for the purpose undertaking mining activities in Thailand. In the proposed joint venture, Tata Steel is to put in about Rs 12 crore representing 49 per cent of the equity while the Thai partner will hold the majority 51 per cent. The joint venture company, once formed, will apply to appropriate authorities in Thailand for mining lease and rights, it is learnt.

Right now Tata Steel imports about seven to eight lakh tonnes of limestone annually, mostly from West Asia. Nearly 35 per cent of the present requirement is to be met by way of import from Thailand. The Thai limestone, it is felt, will be of superior quality.

If everything goes as per plan, the joint venture company should be operational from March - April this year.

The sources however declined to comment on the capacity of the vessels to be used for the proposed shipping services. "We would like to import Thai limestone through Haldia dock which cannot handle very large bulk carriers with full load because of the draught restriction in the Hooghly River," the sources observed thus giving some indication of the capacity of vessels to be acquired.

"However, much will depend on the types of vessels to be available by the time we enter the market for chartering, their age and prices," the sources said adding that all these would be firmed up once the joint venture in Thailand takes concrete shape.