NEW DELHI: The Chairman of Tata Ryerson Ltd. (TRL) and the former Managing Director of Tata Steel, J. J. Irani, on Monday denounced exports of high-grade iron ore and termed such sales to foreign buyers as "suicidal'' for the domestic steel industry.

Interacting with newspersons after inaugurating TRL's new fabrication unit at Faridabad (Haryana) near here, Dr. Irani pointed out that the steel industry had no problems with the export of low grade iron ore (iron content less than 55 per cent).

However, "the export of high grade ore (iron content of 55-65 per cent) is suicidal", he said, as India would soon have to import steel to meet the growing demand. Instead of exporting these scarce reserves, the high iron content ore should first be supplied to the domestic steel-makers, he said.

"Quality ore could even be provided to foreign companies and buyers, provided they set up steel units within the country," he said.

Following the setting up of the Rs. 25-crore Faridabad unit to meet the fabrication needs of the booming auto sector in the northern region — mainly Maruti and its vendor ancillaries — TRL is now planning to invest about Rs. 75 crore to set up three more fabrication units in Chennai, Pantnagar and Singur.

"We will cross a top-line of Rs. 1,000 crore in the current fiscal and plan to achieve a steel processing capacity of two million tonnes by 2008," Dr Irani said.

"We would also start stainless steel fabrication, considering the increased demand for customised products from the domestic market," TRL Managing Director Sandipan Chakravorty said.

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