The Hindu Business Line : Tata Steel expects capacity to go up to 15 mt by 2010

``With the expansion plan already under way, the company's saleable steel capacity will increase to about 5 million tonnes in 2005-06. Plans are being drawn to further enhance the capacity by another 2.5 million tonnes in Jamshedpur.

``It is our vision to be a 15-million tonne company by the year 2010,'' Tata Steel said in its 2003-2004 annual report, explaining alongside that the capacity addition would be achieved through organic growth and acquisition of steel capacities, both within and outside the country.

On business outlook, it said, ``The upbeat outlook for the global economy is indicative of another year of strong steel demand. While China has shown exceptional growth in the recent past, sustaining this momentum may be difficult in the long run.

``The growth in other developing countries and stable demand from the large consumers of the developed economy provide a balance to the expected slowdown in China. In this scenario, global demand and domestic demand for steel are expected to grow at about 6 per cent in the current year.

``The continuing revival in industrial production, together with the Indian Government's focus on infrastructure improvement would, in our opinion, sustain steel prices during the current year. Some intermediate correction however, is possible.''

Up for approval at the company's AGM next month is a proposal to raise its authorised share capital from Rs 690 crore to Rs 850 crore, being done to facilitate the capitalisation of its securities premium account to the extent of issue of bonus shares. It may be recalled that Tata Steel's board had recently recommended the issue of bonus shares in the ratio of one ordinary share for every two existing ordinary shares.