Tata Steel expects to operationalise three million tonne steel plant in the first phase of its six million tonne greenfield steel project at Kalinga Nagar, by March 2014.
This is despite the fact that the company has not been able to get raw material security for the project as allotments of mines are yet to come through. The project is coming up at Odisha’s Jajpur district.
Anand Sen, in-charge of Tata Steel Kalinganagar project said the firm was moving ahead with the project in full-swing. He further said that the company was trying to assess the cost overrun caused because of delays in the project.
He said areas which had hit the company included forex impact, taxes and social cost. When the project was envisaged the rupee was at 43 to a dollar and now it is at 54-55 versus the dollar, he said.
The original project cost for the proposed six million tonne plant was Rs 35,000 crore. Overall project progress would be about 30-35 per cent, officials said. Cyrus Pallonji Mistry, the chairman designate of Tata Sons, recently visited the project site and expressed satisfaction over the progress of work.
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