Tata Sponge Iron (TSIL) was incorporated for the Production of Sponge Iron in 1982 as a Joint Venture of Tata Steel and Industrial Promotion & Investment Corporation of Orissa Ltd (IPCOL).The company was set up based on TISCO-DIRECT (TDR) TECHNOLOGY, which was developed inhouse at Tata Steel. In 1991, Tata Steel acquired IPICOLs stake and at present the company is a sister company of TISCO. Tata Steel provides technical consultancy services comprising design/project engineering, project management, project implementation etc. The entire output of the company is purchased by Tata Steel at market price for use at Jamshedpur. To overcome the raw material shortage, it entered into agreement with Tata Steel which installed 2 crushers to crush lump iron which is easily available. TSIL is located at Bilaipada near Joda, in the Keonjhar District of Orissa. TSIL was the first Indian Sponge Iron Company to received ISO-9002 Certification. In 1987-89, the Company entered into foreign collaboration with Lurgi, Germany for upgradation of annual production capacity. The Companies plant was initially designed for a production capacity of 90,000 TPA and subsquentely the capacity was enhanced in 1990-91. The Company later to meet the growing demand of Sponge Iron doubled its capacity by adding another Klin of equivalent capacity in 1998-99, bringing the capacity to 240000 TPA. In December 2001, TSIL commissioned a 7.5 MW captive power plant to produce electricity from the waste heat of exit gases of its Klin No.2 During 1999-2000, the Company won the first prize for quality from Confederation of Indian Industry (Eastern Region) and the Second Prize for total quality management from Indian Institute of of Metal in the DR category in the year 1998-99 During 2004-2005 the companies board proposed to add three more kilns(i.e, 4th, 5th,6th Klins) of 150000 Tpa each in a phased manner to expand the annual capacity of sponge iron production from 390000 to 840000 tonnes per annum and also increase power generation capacity upto 60 MW to ultimately produce steel upto 2 million tones per annum in the immediate future. During 2005-2006, the installation of an 18.5 MW power plant attached to klin-1 and klin-3 was in progress. Installation of Klin-3 having an annual capacity of 150000 tonnes was completed in March 2006. With this the capacity of sponge iron expanded from 240000 to 390000 TPA. During the period 2006-07, the second power plant of 18.5 MW capacity has been commisioned in November 2006 increasing the power generation capacity from 7.5 MW to 26 MW. The coal block alloted by the Ministry of Coal located at Raghikapur (East) in Talcher coalfields Orissa is expected to become operational in about 3 year from the date of allotment. Preliminary work in connection with development of the coal block is going as per schedule.