Tata Steel, on 8 September 2005, entered into an MoU with the Jharkhand government for setting up a 12 million tpa greenfield integrated steel plant in the state. Another MoU involving capacity expansion at Tata Steel's Jamshedpur steel complex in the state was also signed.

Tata Steel will invest Rs.42,000 crore to set up its greenfield plant in the Manoharpur and Chandil areas of Jharkhand.

The steel major will also expand capacity at its Jamshedpur plant from 5 million tpa to 10 million tpa, with an investment of Rs.11,000 crore.

The MoUs were signed by Mr P.P. Sharma, Chief Secretary, Government of Jharkhand, and by Mr B. Muthuraman, Managing Director, Tata Steel.

According to the MoU, the steel plant will be set up in two phases. The first phase of 6 million tpa is likely to be set up within 36-54 months from the date of obtaining all statutory clearances. The project will also include the development of iron ore mines and other raw material sources including coal and logistic linkages for this plant.

The expansion of the Jamshedpur works is also expected to be undertaken in two phases. Phase I envisaging raising capacity to 7 million tpa is underway. Orders for key equipment have been placed and this phase is expected to be completed by 2008.

The Jharkhand Government and Tata Steel have also entered into two MoUs to cooperate in the field of human resource development with an objective to impart technical and job oriented training to the youth of the state through upgradation of polytechnics and industrial training institutes.

Also See:

Tata Steel's Jharkhand project: Capacity hiked to 12 million tpa (8-Sep-05)