Projects and Operations: India
The Tata Steel Group’s growth and globalisation strategy is driven by its business expansion while maintaining profitability and mitigating risks. The Tata Steel Group over the years has focused on enhancing raw material security and announced major joint ventures in various parts of the globe.
Tata Steel’s Indian operations are one of the most competitive assets in the global steel industry and therefore, capacity expansion in India is one of the key strategies for Tata Steel. The Indian operations draws its greatest strength and its competitive position as one of the lowest cost producers of steel in the world from the quality and yield of its raw material units. The mines have successfully offered raw material security and have partially insulated Tata Steel from the volatility of the global markets. The Company has, therefore, continuously modernised and expanded its raw material facilities right from the 1950s, when it had launched its two million tonne expansion programme.
In FY 2010-11, there were several best ever performances recorded by many units in the Steel Works of the Company:
- The Ferro Alloys and Minerals division registered an increased operating profit of Rs. 825 crores. The Division’s saleable production at 1,405k tonnes in the financial year 2010-11 was higher than financial year 2009-10 (1,350k tonnes) by 4%.
- Chrome alloys exports and manganese alloys sales of the division touched new heights during the financial year under review.
- The sales of flat products at 3.54 million tonnes increased by 2% in FY11.
- The Long products division registered sales of 2.88 million tonnes, marking a 7% rise in 2010-11.
- The Tubes division grew by 6% and 5% in production and sales respectively over the previous year, boosted by various improvement initiatives across all its units.
- The Bearings division registered a growth of 12% and 4% in production and sales respectively in FY 11.
Therefore the India growth strategy remains a fundamental part of the long-term strategy of the Tata Steel Group.
Seraikela
Greenfield Project
Project Highlights:
- Setting up a 12 million tonnes per annum Greenfield integrated steel plant in the state.
- The Greenfield project is to be set up in two phases. The first phase of 6 mtpa is likely to be set up within 36 months to 54 months from the date of obtaining all statutory clearances.
Capacity: 12 mtpa integrated steel plant.
Project Update: Tata Steel is awaiting the R&R Policy from the State Government for its Greenfield project.
Jamshedpur Plant
Brownfield Expansion Project
MoUs with the Government of Jharkhand was signed in 2005 for expansion of Tata Steel's existing plant at Jamshedpur from 5 mtpa to 9.7 mtpa.
Project Highlights
- Co-operation in the area of Human Resource Development through Industrial Training Institutes.
- The project includes the development of iron ore mines and other raw materials sources including coal and logistic linkages for this plant.
- Expanding the ancillary support systems such as power, water, utilities, gas holders, raw materials
Project Update: The first phase which entails reaching a crude steel capacity of 6.8 mtpa has essentially been completed. The capacity of the Jamshedpur plant is expected to become 9.7 mtpa by FY 2011-12. The project comprises setting up of a 6 mtpa Pellet Plant, two coke oven batteries each with 0.7 mtpa capacity, a 2.9 mtpa Blast Furnace and an LD Shop and a Thin Slab Caster and Rolling Mill (TSCR) of 2.4 mtpa to produce hot rolled coil (HRC). The Company is taking several measures to ensure that the environmental standards prescribed by the Ministry of Environment and Forest and the Pollution Control Board are complied with.
The expansion project provides another opportunity for Tata Steel to continue its journey towards producing ‘Green Steel’. The brownfield expansion project has been challenging, as it requires a large volume of construction work to be carried out with minimum disturbance to the existing operations.
Project Progress:
- Major structural and civil work has been completed at the Pellet Plant and the Blast Furnace.
- Equipment supply and installation are at an advanced stage
- Civil and structural work on the second coke oven battery is in progress
- Expansion of the iron ore mines at Noamundi and Joda is under way.
- Civil work and building structures have been completed on the LD Shop and TSCR.
Commissioning of Coated Steel Manufacturing Plant
Project Highlights: Tata Bluescope Steel Ltd. (TBSL) is a 50:50 joint venture between Tata Steel Ltd. and Bluescope Steel Australia. TBSL’s coated steel division has a new state-of-the art manufacturing facility at Bara, Jamshedpur with a capacity to produce 250,000 tonnes per annum in Zinc-Aluminium (Zn-Al) coated coils.
JV between Tata Steel & Nippon Steel Corporation
Project Highlights: Tata Steel and Nippon Steel Corporation (NSC), Japan will set up a Continuous Annealing and Processing Line at Jamshedpur, India with 0.6 mtpa capacity. The line will produce automotive cold rolled flat products and address the local needs of Indian automotive customers for high-grade cold rolled steel sheets. Tata Steel will hold 51% and NSC will hold 49% stake in the joint venture company. The proposed joint venture aims to capture the growing demand for high-grade automotive cold-rolled flat products in India. NSC will transfer its technology for producing high-grade cold-rolled steel sheets for automotive application including skin panel and high tensile steel.
Project Update: A MoU was signed for the purpose between Tata Steel and Nippon Steel Corporation in April 2010.
Other Projects
Simultaneously the Company also has a few major ongoing capital projects, which includes the capacity augmentation of Hot Strip Mill, Coke Dry Quenching at Coke Ovens Batteries 5, 6 & 7 and setting up a new mill for producing Full Hard Cold Rolled (FHCR) coils at Jamshedpur.
Jagdalpur
(Bastar) Project
The Company has signed an MoU with the Government of Chhattisgarh for setting up of a 5 mtpa Greenfield
integrated steel plant in Bastar. Land has been acquired by the Government and been transferred in favour of the Department of Industries, which will subsequently lease it out to Tata Steel Limited.
Project Updates:
- The letter of intent from CSIDC has been issued. Tata Steel has requested for demarcation without any encumbrances, as per terms of MoU, before taking possession of the said land.
- Further, Chhattisgarh Government has accorded approval for drawing water from the river Sabri. T
- The Ministry of Railways, Government of India has granted an in-principle approval for the railway corridor. Public hearing for the Environment Clearance has been successfully conducted.
- Prospecting License for iron ore has been granted in Bailadila-I deposits after obtaining necessary approvals from the Ministry of Environment and Forest and Ministry of Mines, Government of India.
- Prospecting License for Pyroxenite in the close proximity of iron ore area is in an advanced stage of consideration by the State Government.
In line with Tata Steel’s long tradition in Corporate Social Responsibility, several activities in the field of health, youth and women empowerment, sports and skill development are being carried out for local residents as well
as for those from displaced families.
Kalinganagar
Greenfield Project
The Kalinganagar Greenfield Integrated Steel Plant, Odisha will supplement the production capacities of the Jamshedpur Works, producing flat products in premium, value-added steel grades. The project will comprise major facilities like the Sinter Plant, Pellet Plant, Coke Plant, Blast Furnace, Steel Melt Shop, Hot Strip Mill, Cold Rolling Mill and Raw Material Handling units.
Project Highlights: Preliminary work on the 6 million tonne per annum capacity Greenfield steel plant at Kalinganagar, Odisha(to be constructed in two phases) is in progress, focusing on land acquisition, rehabilitation and resettlement work.
- So far, five construction power sub-stations have been commissioned.
- The boundary work around the plant site has been completed.
- Construction road and site grading work is under progress.
- Piling and other civil work in the Sinter Plant, Blast Furnace and Steel Melting Shop areas has also begun.
- Having obtained the necessary statutory clearances from the relevant regulatory authorities to set up the plant, the Company is now focused on managing the logistics to do with its construction.
- The construction site at Kalinganagar is being connected via rail linkages to the nearest railway station and the Dhamra Port to enable efficient transfer of raw material and finished products once the plant is operational.
- The Steel Plant will also be connected to the Daitari-Paradip Expressway and the State Highway.
- The power requirement for the project is to be met through two captive power plants to be installed by Industrial Energy Limited, a joint venture between Tata Steel Limited and Tata Power Limited.
Progress in Resettlement and Rehabilitation
- Tata Steel views itself as having adopted the families displaced by the Kalinganagar project as part of its own ‘family’, the Tata Steel Parivar.
- The Resettlement and Rehabilitation (R&R) scheme that Tata Steel Parivar is implementing at Kalinganagar has been designed to provide fair compensation to ensure that the displaced families are provided with practical and emotional support to enable them to adapt to their new surroundings.
- The Company has set up three modern and environment-friendly relocation settlements at Trijanga, Sansailo and Gobarghati. The rehabilitation colonies for their resettlement have been provided with good infrastructural facilities that include clean drinking water, street lighting, and a community centre set up by the Company. As of March 2011, a total of 910 families have moved from the plant site to the new rehabilitation colony area where plot allocation has been started.
- A hospital with all amenities is also being provided by the Company.
- The income of the families who were the first to move to their new homes in 2006 has since then almost doubled, while their asset value has almost quadrupled.
- Planned rehabilitation, the creation of alternative income-generating activities, the health and educational facilities provided by the Company – all of these have helped the relocated families attain the Millennium Development Goals (MDG) of the United Nations well before the 2015 deadline.
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Dhamra
Port Project
Project Highlight: The Dhamra Port Company Limited, a 50:50 joint venture of Tata Steel Limited and Larsen & Toubro, is developing a deep-draught port under a concession agreement awarded by the Government of Odisha on Build, Own, Operate, Share and Transfer (BOOST) basis. Situated between Haldia and Paradip, Dhamra Port will be one of the deepest ports in India with a draft of 18 meters, capable of accommodating super capesize vessels up to 1,80,000 DWT. Once commissioned, Dhamra Port will be of strategic importance to Tata Steel in terms of its integrated logistic cost of raw materials and will also consolidate Tata Steel’s supply chain network, contributing to its expansion aspirations.
Project update: Phase-I of the project is complete and the port has started commercial operations on 6th May 2011. In Phase-I, two fully mechanised berths, one for handling import cargo and the other for export cargo with back-up facilities have been built, along with a rail corridor for hinterland connectivity. The construction of railway line on a route length 62 km from Bhadrak to Dhamra is completed except commissioning of the automated signaling system.
For more information please visit www.dhamraport.com
For more information on Tata Steel's initiatives in Odisha please visit odisha.tatasteelindia.com
Haldia Plant
Tata Steel merged Hooghly Met Coke and Power Company Ltd. (HMPCL) with itself from 1st April 2009. The Company was set up to produce low ash metallurgical coke primarily to meet Tata Steel’s requirement at its Jamshedpur plant and also to supply hot gases to Tata Power for electricity generation by adopting heat recovery route. The plant is located in Haldia, West Bengal. Close proximity to the Haldia Dock Complex offers several advantages, including the import of coking coal in a more cost effective manner. The company has a production capacity of 1.6 million tonnes of coke.
Tuticorin Mines
Project Highlights
- MoU with the Government of Tamil Nadu signed on June 27, 2002.
- Titania project involves mining, mineral separation and value addition i.e. pigments production in phases subject to techno- economic viability.
- Prospecting license over 80 sq.km area granted by the Government of Tamil Nadu in the districts of Tirunelveli and Tuticorin with due approval from Government of India.
- The feasibility study conducted with the help of Consortium Partners comprising Outokumpu Finland's physical separation division based in USA, Outokumpu-Lurgi, Germany, Pincock Allen and Holt, USA, a resource and mining consulting company and L&T.
- Environmental Impact Assessment of the project carried out and Environmental Management Plan drawn with the assistance of MIN-MEC Consultancy.
Capacity: 60,000 tonnes per annum of titanium di-oxide.
Haveri District Steel Plant Project
Tata Metaliks Limited (TML) and Tata Steel have entered into a MoU with the Government of Karnataka in June 2010 for setting up an integrated steel plant of 3 mtpa in Agadi and Boodagatti villages of Haveri District, Karnataka. State High Level Clearance Committee of the Government of Karnataka has approved 2,500 acres of land at Agadi, Boodagatti, Devagiri and Yellapura villages, and is in process of acquiring land.