Companies

Tata Steel not happy with progress of greenfield projects in two states

H. M. Nerurkar   | Photo Credit: SHASHI ASHIWAL

Tata Steel is not happy with the progress of its greenfield projects, Managing Director H. M. Nerurkar has said. He said that the irresponsible behaviour of business organisations has created scepticism among the people and there was a need to address this issue while setting up large projects.

“We need to have a communications cascade to address misguided and unwarranted apprehensions,” he said. Tata Steel is trying to set up a greenfield capacity each in Jharkhand, Orissa and Kalinganagar.

The project in Orissa has made some headway with the government readying a R&R (resettlement and rehabilitation) policy and the company trying out a different model. The company is hopeful of starting work on the project in the next few months. In Jharkhand, Mr. Nerurkar said that the political leadership of this developing state had not matched its natural resources.

In Chhattisgarh, there was a law and order problem and efforts were being made to slice through the various issues and win the people's confidence.

Overall, there are fears of transition among the locals from an agrarian to an industrial society and there are problems arising out of the aspirations of the people with regard to R&R, generation of employment opportunities, boosting local entrepreneurship, change in status of women and the like. He said these in an interview to the company's journal.

Commenting on the Indian steel industry, he said that the industry was expected to grow at 7-8 per cent annually for the next five years.

“Domestic steel production is expected to touch 90 million tonnes by 2015. To a question as to what will be the company's role in meeting this demand, Mr. Nerurkar said “We have ambitions to be a player of significance in flat as well as long products. We also have capacity available in our European operations to seed markets before our plans fructify in Orissa, Chhattisgarh and Jharkhand. Our 10 million tonnes per annum plan is well underway at Jamshedpur n will be completed by 2012,” he said. The Tata Steel MD said that with continuing strong investment in infrastructure, about 55 per cent of the 90-million tonne demand in India would comprise long products.

On what will be the Indian product profile of Tata Steel, he said that of the 10 million tonnes production, 65 per cent would be flat products which would be increased to 70 per cent once the Kalinganagar plant came up which was a flat products plant “By 2015, our product profile will be flat heavy to the extent of around 70 per cent, which is required to match the demands of sectors such as automobiles.

There is also a rapidly growing demand from the construction sector which will have to be addressed.

He said that the period of mining leases should be increased to 50 years from 20 and 30 years now to enable better planning.


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Printable version | Jan 22, 2022 5:00:01 PM | https://www.thehindu.com/business/companies/Tata-Steel-not-happy-with-progress-of-greenfield-projects-in-two-states/article16302722.ece

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