Tata Steel rejigs capex plans
Tata Steel has decided to go ahead with its Rs27,000 crore plan to expand capacity at Jamshedpur and build a new plant at Orissa. It will push back other capital expenditure plans and greenfield units at Jharkhand and Chattisgarh due to the liquidity crisis and slow demand.
Tata Steel is planning to expand its Jamshedpur capacity by 3 million tonnes to 10 million tonnes by 2010, at an estimated cost of Rs12,000 crore.
It also has plans to build a 3 million tonnes plant at Kalinganagar in Orissa at Rs15,000 crore. The Orissa unit would be the first phase of a 6 million tonnes plant.
The financing for these two projects has been completed and land has also been acquired. The crisis and slow demand has prompted the company to push back its plans that includes units in south-east Asia and Europe.
Earlier, Tata Steel planned to invest Rs42,000 crore on a 12 million tonnes steel plant in Jharkhand, while in Chattisgarh it would build a 5 mt steel plant.