The project is part of brownfield expansion to augment production capacity
NEW DELHI: Tata Steel on Monday announced the setting up of a new blast furnace at its Jamshedpur works as part of the Rs. 14,000-crore brownfield expansion project to augment its production capacity to ten million tonnes in two years.
The ‘I’ blast furnace, which would have a capacity to make 3.05 million tonnes of hot metal annually, is likely to be commissioned by November 2010.
“It is a project about productivity and a project aimed at making Jamshedpur the best steel producing site,” Tata Steel Managing Director B. Muthuraman said.
The new blast furnace will be designed, supplied, erected and commissioned by a consortium of companies, including PW Italia, L&T, PW India and PW Luxembourg.
Tata Steel has undertaken brownfield expansion to enhance its production capacity to 10.5 million tonnes by 2010. At present, the company’s Jamshedpur plant has a capacity to produce about 6.8 million tonnes of steel annually. Around six months ago, the steel major had blown in a blast furnace (H) of 1.8 million tonne capacity.
In addition to increasing the capacity of its exisiting unit, the steel major is in the process of setting up greenfield projects in Jharkhand, Orissa and Chhattisgarh.
While in Jharkhand it proposes to invest about Rs. 42,000 crore for a 12-million tonne integrated steel plant, in Orissa it intends to pump in nearly Rs. 22,000 crore for a six-million tonne unit.
The steel major also plans to invest Rs. 18,000 crore for setting up a 5-million tonne steel plant in Chhattisgarh.
For all the proposed greenfield projects, the company claims it is in the process of acquiring land. — PTI