The Hindu : Business : Tata Steel MD cautions Jharkhand government

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Friday, May 13, 2005

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Tata Steel MD cautions Jharkhand government

Special Correspondent

Check any new entrant's antecedents for tapping ore

KOLKATA: The Managing Director of Tata Steel, B. Muthuraman, has cautioned the Jharkhand government against inviting `one-and-all' to set up steel projects in Jharkhand, saying that it was important to check a company's antecedents before allowing it to tap the State's iron ore reserves and set up a project.

"Invite companies but check their heritage, track record and shareholding pattern before throwing open the State's mineral reserves before them," he said in the presence of the Jharkhand Chief Minister, Arjun Munda. Mr. Munda was in Jamshedpur on Wednesday, to inaugurate the completion of Tisco's one million tonne capacity expansion project.

The remarks, made at a public forum by the MD of India's largest integrated steel plant in the private sector, gain significance in the context of L. N. Mittal's keenness to set up a steel plant in the State.

Contributions to State

Mr. Muthuraman took pains to mention that Rs. 40,000 crores had been spent by the 98-year-old Tata Steel, in areas other than steel-making. Money had been spent not only for uplifting the region around Jamshedpur but also for supplying cheap steel for nation-building during the administered price regime.

"Compare this with other private sector steel-makers like Essar or the Mittals or even overseas companies," he said, adding that it was important to check whether newer entrants would create such value or make similar contributions to the State.

However, later during an impromptu press meet, Mr. Munda said that in a globalised era, investments could not be shut out. He said the proposal submitted by the Mittals was an initial one and the government was now awaiting a firm proposal.

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