The world's sixth largest steelmaker, Indian-based Tata Steel, has been forced to suspend its greenfield projects in Jharkhand and Chhattisgarh, for which land has yet not been acquired, due to the liquidity crisis and the slowdown of demand. Meanwhile, the company will continue its expansion at Jamshedpur and also the construction of a six million mt plant in Orissa state, both of which are considered to be high-return projects.
In addition, Tata Steel intends to decrease the workforce at its Jharkhand-located Jamshedpur plant by introducing an early separation scheme (ESS) for which employees above 50 years will be eligible. Under the ESS scheme Tata Steel plans to reduce the plant's workforce of 34,000 by 2,100.