MUMBAI, Jan 28: TATA Iron & Steel Co, after almost a year's delay, has finally begun groundwork for a new 1.2 million tonne cold rolling mill in Jamshedpur, Bihar, through the relocation of an existing waste recycling plant.The mill is scheduled to begin commercial production in September, 2000, a year after it had proposed to get a similar mill at Gopalpur going.
Tisco sources said the company has decided to set up the mill, which will now come up first, adjacent to the upcoming hot strip mill in the main integrated steel complex. As the site now houses the waste recycling plant, the company has begun the process of relocating it elsewhere in the main complex.
Construction of the mill is expected to begin in around May-June this year. The order for supply of the plant is expected to be placed around the same time, Tisco sources said. No fresh tenders will be floated for supply of plant and equipment, they added.The company had shortlisted SMS of Germany and Hitachi of Japan as plant suppliers from along list of international majors who had put in their bids for the cold rolling mill which was to come up in Gopalpur, Orissa.
Nippon Steel of Japan, who had earlier been appointed as the technical consultant for the Gopalpur project, will be retained in the same capacity for the cold rolling mill at Jamshedpur.
Tisco had initially planned two cold rolling mills -- one in Jamshedpur and the other in Gopalpur, where it proposes to set up a 10 million tonne integrated steel unit. The greenfield project will be promoted by a new company, while the cold rolling complex at Gopalpur will be a division of Tisco.
However, due to the alleged negligence on the part of different government agencies in improvement of infrastructure at Gopalpur, the Tisco has now decided to bring forward setting up of the cold rolling mill at Jamshedpur while putting the one at Gopalpur on hold.
Preponing the cold rolling mill in Jamshedpur had become essential as the hot strip mill, currently under construction, is expected tobecome operational by mid-1999.
The hot strip mill is part of Tisco's phase IV expansion. Tisco, for the moment, has decided to remain tightlipped on the project cost.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
