Tata Steel Ltd is aiming to start commercial production at 3 million tons per annum (mtpa) at its Kalinganagar project in Odisha from April 1, 2016, the company’s Managing Director, T V Narendran, said on January 7 in Kolkata.
Narendran, who was talking to reporters after inaugurating a new office of the Indian Iron and Steel Sector Skill Council of which he is the chairman, said various facilities of the plant have already started operation and the trial run of the blast furnace and steel melting shop will be done in the current quarter (January-March) after which commercial production will start from April 1.
“Our coke oven and sinter plants are already in operation, while hot strip mill is ready and we have already rolled some coil. The blast furnace and steel melting shop will go through trial run in this quarter and the formal commissioning of the project will be in April,” Narendran said.
“Like any steel plant, Kalinganagar also has various facilities which have already started operation. The steel plant is not one switch as there are multiple facilities,” he said.
Asked if it is the right time to commission the plant when there is already a glut in the steel market, the Managing Director of Tata Steel (India and South East Asia) said, ”See, we always had very good equity in the marketplace. We have good relationships with our customers. We are, for many customers, the first choice of suppliers.”
“In the past, when we expanded our capacity from 7 million tons to 10 million tons, it happened at a time when the GDP growth was at about 5%, ie, it was even lower than today. But we did not have any problems, I won’t say it would not have any problems, because there are challenges, there is no doubt about it,” he said.
He stressed that what is currently happening in the steel market is not going to stop them or slow them down and the plant will get commissioned as per plan.
“But yes, our point is not so much the ability to sell, but the profitability of the industry, which is going to affect the future investment that are made in the industry by Tata Steel and anyone else,” Narendran said.
Source: India Steel Market Watch