Tata Steel studying impact of inflation on projects

July 16th, 2008 - 8:38 pm ICT by IANS  

Kolkata, July 16 (IANS) Tata Steel is studying how spiralling construction material prices are impacting its proposed steel projects, a top company official said here Wednesday. “We have just started studying the impact of inflation on all our new projects,” chief operating officer H.M. Nerurkar said:

“Steel manufacturing costs have risen by $250 a tonne, which is not being realised from the domestic market yet,” he added.

The steel major has already started preliminary work at its projects in Orissa, Chhattisgarh and Jharkhand.

Tata Steel is setting up a six million tonnes plant at Orissa, which is one year behind schedule.

“The Orissa project will face cost overrun. While most of the order for the plant has already been placed, civil construction has been delayed,” Nerurkar said.

He said the resettlement and rehabilitation (R and R) policy has been put in place for the Chhattisgarh plant, and the company would start land acquisition after the monsoon.

Tata Steel is awaiting “land clearance” and announcement of the R and R policy from the Jharkhand government for the steel project there.

Tags: , , , , , , , , , , , , , , , , ,

Posted in Business |