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Tata Steel is hopeful of operating its Kalinganagar and Gopalpur units at Odisha in 2015-16. While the first phase of the 6-million tonnes per annum steel unit at Kalinganagar will be operational by the end of FY-15, construction of the ferro-alloy unit at Gopalpur will be completed in another 18 months.
Kalinganagar is Tata Steel’s first greenfield project in India.
According to TV Narendran, Managing Director, Tata Steel, around 40,000 people are working onsite (for the Kalinganagar project).
“Kalinganagar is going on full stream. By the end of the next financial year (end of FY15) is what we have said (it will be operational). We are sticking to that expectation,” he told reporters on the sidelines of a Confederation of Indian Industry (CII) meet in the city. According to Narendran, the company is currently sorting out some “local issues” at its ₹1,000-crore Gopalpur project. Construction of the 50,000 tonnes per annum ferro-alloy unit has already begun and equipments have been put “on ground”. The Tatas have also laid the foundation stone for and hospital there. “There were some local issues that we are sorting out now. Construction has started and that will take another 18 months. That will take another 18 months,” he added.
Outlook Commenting on the steel sector outlook, Narendran said there were some changes in the last two-three months. This includes clearance for several projects and commercial vehicle sales picking up.
“The commercial vehicles business for the automotive companies is definitely seeing a pickup. I don't know how long it will stay but this quarter is definitely better than last quarter,” he added. According to the Narendran, liquidity continues to be tight in the market as a result of which many of the company’s customers are struggling.
However, a stable economic environment post the general elections are desirous for growth. Also important is having the right policies. “At the end of the day, people want some stability and from an industry point of view we want the right economic policies for growth,” he pointed out.
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