Tata Steel considering an investment of Rs 1.995 crore

Tata Steel considering an investment of Rs 1.995 crore

Major Indian steel maker Tata Steel Company Ltd. is planning to make an investment of Rs 1.995 crore (around $419.5 million) so as to increase its annual crude steel production capacity by 1 million ton to 5 million ton. Market sources report that the proposed expansion plan will be conducted in almost 2 or 3 years and due to completion of this plan finished steel production capacity is expected to reach 4.5 million tonnes from 3.7 million tonnes. Construction of a blast furnace as a part of the expansion plan at a cost of Rs 500 crore (around $105 million) will be financed by internal sources. Tata Steel stated that expansion was planned in relation to the increase both in domestic and international demand and despite current price levels are at desirable levels only 15% of the production will be exported. Bulk of the capacity increase will be allocated to production of long, flat rolled and cold rolled steel products. It is expected that the expansion plan, originally received approval in principle from the board, will soon obtain the formal approval as well.