The finished steel production capacity of Tata Iron Steel Company (Tisco) will go up by 60 per cent by next year, when the company finishes its ambitious modernisation plan ahead of schedule.
With the accomplishment of Rs 2,425 crore fourth phase of modernisation, Tisco will phase out the production of intermediate steel products semis and increase the finished steel capacity (both flat and long products) to 3.2 million tonnes from the present 2.04 million tonnes per annum.
We are ahead of schedule by six months. We hope to complete the fourth phase of modernisation and expansion by end 1998, Tisco managing director J J Irani said. With this we will also phase out production of semis (present capacity being 6.6 lakh tonnes), he said.
Irani, however, regretted that there were undue delays in going ahead with the green field steel plant at Gopalpur in Orissa on account of infrastructural bottlenecks.
Commenting on current performance, he said Tisco had stepped up exports to the extent of 20 per cent of its production to offset the effects of sluggish growth trends in the domestic market.
The Gopalpur plant is supposed to be a port-based plant and no progress can be expected if the port is not put in place, he said.
Last year, Tisco exported 15 per cent of its total production and had sought to bring it down to 12.5 per cent in 1997-98, he said.
However, in view of sluggishness in the domestic market, Tisco had to increase its exports, Irani said adding unless the government starts spending in the infrastructure projects, steel demand may not pick up.
We thought there would be a revival in industrial growth and the construction industry by October. But there are no signs of any change in the scenario though October is just a fortnight away, Irani said.
However, he clarified that the company had not piled up inventories and had managed to sell the entire produce both in the domestic and international market.
International prices are significantly better than last year, Irani said even while admitting that the domestic market would be much more lucrative.
We are ahead of schedule by six months. We hope to complete the fourth phase of modernisation and expansion by end 1998.
