Jet set

Calcutta, June 2: Tata Steel plans to set up a 5-million-tonne integrated steel plant in Chhattisgarh.

The state investment promotion board, headed by the chief minister, cleared the project today. The steel plant will come up in the Bastar region.

State government sources claimed the investment could be Rs 5,000 crore, even as the industry put the figure much higher at Rs 15,000 crore.

A Tata Steel spokesperson refused to confirm the development. ?We have sent proposals to various states. When a proposal materialises, the company will make an announcement. We are not in a position to comment on the Chhattisgarh project now,? the spokesperson said.

Tata Steel is eyeing a 15-million-tonne capacity by 2010. Its present capacity is about 7 million tonnes (MT), which includes 2 MT acquired through the Singapore-based NatSteel buyout.

Its Jamshedpur plant produces about 5 MT steel. The company plans to scale it up to 7.5 MT in the medium term and 10 MT in the long term.

Tata Steel is also planning a Rs 15,000-crore investment to set up a 6-million-tonne plant in two modules in Orissa.

The first module of 3 MT will be ready in the next four years, while another 3 MT will be ready in the two years after that.

The company is also developing a deepwater port in Orissa in collaboration with Larsen & Toubro.

?Even as the target is 15 MT by 2010, the company will grow and add more capacities. Chhattisgarh is a move in that direction,? sources said.

Analysts said steel companies have been making investment proposals to states that are rich in iron ore.

?The key to all investment proposals is the iron ore mining lease. Volatile raw material prices have forced the companies to secure supply at a fair price over a long term,? they added.

It remains to be seen which of the three iron ore rich states ? Jharkhand, Orissa or Chhattisgarh ? actually bags large steel investments.