ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Cost of Cheap Steel

Cost of Cheap Steel Hansavivek TATA IRON AND STEEL COMPANY has, with the approval of the government, commissioned Nippon Steel of Japan, the largest single steel producer in the world, for a feasibility study for the expansion of its plant by about two million tonnes of flat-rolled products. Nippon Steel will be paid a fee of $533,000 and will submit its rep6rt in January next. The cost of such a large expansion will run into many hundreds of crores of rupees and the problems of its financing and its ultimate effect on the company's capital structure will indeed be formidable ones. The company has urged government that the legitimate interests of existing shareholders should be safeguarded. Meanwhile, the programme of phased replacement/rebuilding of the old coke oven batteries is in progress. A new 54-oven battery was commissioned in last March. Battery number three, last rebuilt in 1958, was shut down for rebuilding in May 1972 and will be back in operation by mid- 1974. Construction of the coal fines washeries at Jamradoha and West Boka- ro, under the colliery expansion project, was completed last year. Execution of the colliery expansion project has been delayed, however, owing to non-receipt of import licences in consequence of a delay of over two years in receiving the industrial licence for the project. The project is now expected to be completed by 1975-76. Although both units of the palletising plant have been commissioned, it has not been possible to stabilise operations owing to frequent power stoppages. The company raised Rs 15 crores last year through a public issue of 8 per cent debentures to meet a part of the cost of the replacement and rehabilitation programme.

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