• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• Business Line
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Chennai , July 28

Tube Investments of India Ltd, a Murugappa group company, has dropped its plans for an integrated steel project in Orissa.

The company had signed an agreement with the Orissa Government in April 2005 for a three-million-tonne-a-year steel plant at an investment of Rs 3,500 crore. It planned to promote a separate company for this purpose and was in talks with some international players for a joint venture.

In a release today, TI said: "Considering the present steel scenario, the company has now decided not to proceed with the steel project and to withdraw from the said MoU with the Government of Orissa."

According to reliable sources, the company was in talks with an international player for a joint venture for the project, which had not made much progress.

Also, since signing the agreement with the Orissa Government the steel scenario in the world had changed, with most established players expanding capacity. Consequently, steel availability is no longer a problem, which is another reason for TI to drop its plan.

The company said that it has incorporated a wholly owned subsidiary called Tubular Precision Products (Suzhou) Co Ltd for its China project, which is expected to commence production in March-April 2007.

For the quarter ended June, TI has reported a net profit of Rs 89.46 crore (Rs 23.41 crore) on net sales of Rs 381.52 crore (Rs 378.19 crore). However, TI had other income of Rs 72.46 crore for the quarter under review, including Rs 71.30 crore as profit from sale of long-term investments. The other income for previous period was Rs 1.03 crore.

More Stories on : New Projects | Steel

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Revathi Equipment allots Rs 10 cr for buyback

Copyright © 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line