Financial Daily from THE HINDU group of publications
Friday, Aug 26, 2005
Financial Daily from THE HINDU group of publications Friday, Aug 26, 2005 |
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Corporate
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Outlook Jharkhand project: `Tata Steel's worry is on equipment supplies, project management' M. Ramesh
Chennai , Aug. 25 TATA Steel, which has announced a 10-million tonnes steel project in Jharkhand, does not see any difficulty in raising Rs 55,000 crore for the project. But, equipment supplies and project management could be a hurdle the company may need to overcome. "Funds are the least of our problems," Tata Steel's Managing Director, Mr B. Muthuraman, told Business Line. . He said that over the next 10 years, Tata Steel expects cash flows anywhere between Rs 60,000 crore and Rs 80,000 crore, "on conservative price assumptions". Enough for putting up 20 million tonnes of steel capacity, at a debt-equity ratio of 1:1, he said. The hurdles could be equipment supplies and getting people for project management, he said adding, "We will go to China for equipment." As per the company's plan, the first phase of the plant, targeting 5 million tonnes of steel a year will be completed in four years at a cost of Rs 15,000-20,000 crore. The second phase will takethe subsequent five years and Rs 30,000-35,000 crore to enhance thecapacity to 10 million tonnes a year. Tata Steel has plans to grow its capacity to 25-30 million tonnes over the next decade. It proposes to set up a 6-million tonnes plant in Dhubri, Orissa, and a 3-million tonnes plant in Chhattisgarh.
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