Tata Steel to commission first phase of Orissa plant by end-FY13

Tata Steel said on Monday that it plans to commission the first phase of its six million tonne steel plant at Kalinganagar, Orissa by the end of 2012-13 fiscal.

“Our aim is the last quarter of 2012-13. That is the plan and work has already started at the site. I think we should be able to meet the target,” the Tata Steel Managing Director, Mr H.M. Nerurkar, told reporters on the sidelines of a conference organised here by the Indian Chamber of Commerce.

The company is investing Rs 17,000 crore on the project and Mr Nerurkar said the required funding for the project has “more or less” been tied up. Tata Steel recently raised Rs 3,477 crore through a follow-on public offer and had said part of the proceeds would be invested in the project.

Mr Nerurkar added that the construction work has now begun at the Orissa project, which initially faced resistance from local villagers. The steel plant will have an initial capacity of three million tonnes a year, which will later be ramped up to six million tonnes.

Commenting on the sale of Riversdale, in which Tata Steel is the largest shareholder, Mr Nerurkar said that despite Rio Tinto's bid, Tata Steel would like to stay on as a shareholder in Riversdale.

“We are the sustainable shareholder there, so we would like to remain in Riversdale. We are interested in coal,” he said.

On steel prices, Mr Nerurkar said that they would remain volatile for the time being. “Steel prices are going to be volatile as it is determined by what the coal and iron ore prices in a particular quarter are.”

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