Odisha Chief Minister Naveen Patnaik today proposed the Tata group Chairman Cyrus Mistry to set up an IT and Electronics Manufacturing Cluster at Naraj in Cuttack.
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Now, Mistry is looking to sell a few of Tata’s United Kingdom steel plants, retaining the more profitable ones there and elsewhere in Europe.
In 2004, Tata Steel had inked a MoU with the Odisha government to set up 6 million tonne steel plant at Kalinganagar. The first phase of 6mtpa project will produce world-class flat, lighter, high-tensile strength steel and will augment its Indian production to almost 13mtpa of crude steel.
But Tata companies are also burdened with debt of about $38bn, the bulk of it on the balance sheets of Tata Steel, Tata Motors and Tata Power, the country’s second-largest private electricity producer.
They intend to give a memorandum to Chief Minister Naveen Patnaik as he puts the new plant on stream and seek his intervention to the injustice meted out to them. “The spin-off benefits from this plant will accrue to the local economy of Kalinganagar and Jajpur”. During the discussion, the Chief Minister proposed several industrial projects which could be developed by Tata Group in the State. “This plant is our key commitment towards nation building and an effort to ensure sustainable growth. I am confident that the plant will achieve global benchmarks in steel production, and at the same time will remain committed to growth and development of the State of Odisha”.
“Debt was one of the biggest legacy issues, and we haven’t seen any major changes on that front yet”, Shishir Bajpai, a director at Mumbai-based IIFL Wealth Management, says.
The state government is developing a greenfield EMC at Harapur, Gaudakasipur and Durgapur villages of Khurda district.
He further added, “Though the steel sector is going through a tumultuous period, Tata Steel aims to hold a strong ground in tough times”.
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As part of Vision 2025, Mistry’s plan also includes growing Tata’s three infrastructure firms – Tata Housing Development, Tata Projects and Tata Realty and Infrastructure.
