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Tata Steel to invest Rs 11,000 crore in 8 years
BS Regional Bureau in Jamshedpur |
August 27, 2003 07:57 IST
Tata Steel has submitted a plan to invest Rs 11,000 crore (Rs 110 billion) in Jharkhand over the next five to eight years.
The proposal indicates that the company may add on as much as 3 million tonnes of steelmaking capacity at Jamshedpur.
The Jharkhand government recently renewed Tata Steel's lease over vacant lands in Jamshedpur for commercial use.
In a letter to Jharkhand chief secretary A K Mishra, Tata Steel managing director B Muthuraman said the company would make an immediate investment of Rs 2,000 crore (Rs 20 billion) for capacity addition of 1 million tonne of steel and invest another Rs 4,000 crore (Rs 40 billion) for further capacity addition of 1.5-2 million tonnes over the next five to eight years.
Tata Steel also said it would like to enter into a joint venture with the state government for export of iron ore. The business has a potential turnover of Rs 2,000 crore.
"We will request the government for an adequate lease within the state for exporting 20 million tonne of iron annually," Muthuraman's letter stated.
Muthuraman's letter said Tata Steel would also like to invest in the thermal coal business. "We have already made, and will be making, several more applications for the grant of thermal coal leases jointly with power generating companies for a business that has the potential to grow to an annual turnover of Rs 3,000 crore (Rs 30 billion)," he stated.
Muthuraman's letter referred to plans of the Taj Group of hotels to set up a star hotel in Ranchi to boost development of tourism in Jharkhand.
Tata Steel was also helping Tata Power in the rural electrification project in Jharkhand. In addition, the company offered to assist the government in implementing e-governance in the state as well as set up call centres.