New Milestones

New Milestones Hansavivek TATA IRON AND STEEL COMPANY (TISCO) has decided to participate in a joint venture in Orissa with Industrial Promotion and Investment Corporation of Orissa (IPICOL) for setting up a sponge iron plant and, for this purpose, has promoted in collaboration with IPICOL a new company called 'IPITATA Sponge Iron'. Total cost of the project is estimated at about Rs 35 crore, out of which about Rs 11 crore will be met by share capital. It is proposed that TISCO and IPICOL will contribute Rs 2.55 crore and Rs 2,71 crore, respectively, and the balance capital will be offered to the public and financial institutions. The. exact amount to be contributed is under discussion with IDBI. The remaining cost of the project is to be met out of long- term loans to be raised by the new company after its promotion. TISCO has received two industrial licences, one for the expansion of capacity in alloy steel beaming rings from 2 million to 20,5 million per annum and the other for manufacture' of 5,250 tonnes per annum of alloy steel rings, annular forgings and flanges. These projects, estimated to cost Rs 21 crore, are expected to be completed in 1983-84. The company commissioned the new washery in March last and thus essentially completed West Bokaro colliery project on which it spent Rs 42.60 crore. Full scale operations at the washery have been delayed due to insufficient power availability. When the new plant attains full production, the company will be virtually self-sufficient in its coking coal requirements. The first phase of the modernisation programme is expected to be completed in March 1983 except for the refractories plant, the second oxygen unit and the gas recovery system. Meanwhile, the company has obtained the Steel Ministry's clearance, in principle, for undertaking the second phase. TISCO continued to operate at over 100 per cent of its installed capacity during 1981-82 and earned a record profit because the government allowed main producers to charge a lair market price for billets and bars from February 1981. The company's sales fetched Rs 593 crore against Rs 438 crore in the previous year and gross profit amounted to Rs 105 crore against Its 76 crore. Net profit came to Rs 47.65 crore (Rs 26.46 crore). The directors have maintained dividend at 15 per cent on the equity capital as enlarged by a two-for-five bonus issue and also proposed payment of an additional 2 per cent as a bonus to mark the 75th anniversary of the company. The enhanced distribution is covered 3.82 times against 3.32 times previously. The management decided to discard the plant. Indian Tube Company (ITC) has become a subsidiary of TISCO with effect from June 16, 1981 as a result of Stewarts and Lloyds (Overseas) empowering the. company to exercise its powers and rights at the general meetings of ITC in regard to the appointment of Directors of ITC, Cyanides and Pigments, in which TISCO and ITC each holds 50 per cent of the subscribed share capital, has also become a subsidiary of TISCO from the same date.