Modernisation Drive

Modernisation Drive Hansavivek TATA IRON AND STEEL COMPANY (TISCO) has drawn up a five-year plan of capital expenditure of about Rs 1,000 crore, a major part of which will be devoted to new facilities to maintain and improve its steel- making capability. This will enable it to rectify, after many years of neglect due to paucity of funds, some major deficiencies in its plant, such as the absence of a raw material yard and handling facilities, an additional sinter plant, more power generation, etc With the addition of the bar and rod mill and certain modifications to the existing mills, the management hopes to maintain production for some years to come at the highest levels of plant utilisation. The company has initiated steps to implement the letter of intent for expanding its saleable steel capacity from 1.74 million tonnes to 2.10 million tonnes per annum. The Joint Plant Committee (JPC) has sanctioned a loan of Rs 80 crore to the company out of the Steel Development Fund for financing the rupee requirements of some major projects under taken by it. These projects include schemes for modernisation of the facilities at the medium and light structural mills, improvement in infrastructural facilities such as a waste recycling plant, improvement of town services, etc. The company also proposes to approach the J PC for financial assistance of about Rs 300 crore to undertake other capital projects. The company has entered into an agreement with Korf of West Germany to set up a new company, subject to government approval, for the import of steelmaking technology which eliminates the use of coking coal and substantially reduces the necessity for power. At present, the size of such a production unit it restricted to about 3 lakh tonnes per annum, but it is hoped that higher tonnages might be possible in the near future. This will be a revolution in steelmaking in India and the future growth of the steel industry can be assured on a more viable basis.