Irani spells out Tisco plans

By Our Staff Correspondent

MUMBAI, JAN. 21. With the ramping up of its 1.2 million cold rolling mill (CR) plant, Tata Iron and Steel Company (Tisco) expects to produce 1.80 lakh tonnes of cold rolled steel in the fourth quarter of the current year.

Further, it will produce 3.31 million tonnes of steel in 2000-01 as against 3.25 million tonnes in 1999-2000. The CR unit will account for 12 per cent of production, with HR accounting for 52 per cent (64 per cent in 1999-2000), semis 8 per cent (11 per cent) and longs 28 per cent (25 per cent).

Speaking at a press briefing here last week, Mr. J. J. Irani, managing director, Tisco, further said that in 2001-02, the company would produce 3.5 million tonnes of steel of which the CR unit will account for 34 per cent, HR 28 per cent, semis for 8 per cent and longs 30 per cent of production.

Mr. Irani said for the current full year, interest charges would be higher than in the previous year but gross interest would be lower due to the commissioning of the CR mill and also the company's decision to exercise the option to repay the loan on the 17 per cent interest bearing Tata Trust Bonds for Rs. 500 crores. The company has the option to repay the 10 year loan in 5-10 years and Tisco has decided to repay it in five years which will be in October this year. The company will repay around Rs. 700 crores.

Commenting on the global steel prices, Mr. Irani said, ``The downward trend in international prices has been arrested. In India, the fluctuations in prices are not as wide as they are abroad. Domestic prices are now more or less stable .

Send this article to Friends by E-Mail

Section  : Business
Previous : Cellular operators bet on rate cuts to grow
Next     : Ray of hope for old economy IPOs - Prime