Murugappa group to set up 3mt-steel plant in Orissa
By Our Corporate Bureau | 23 Apr 2005
Chennai: The city-based Tube Investments of India Limited (TII) part of the $1.2 bilion Murugappa group (www.murugappa.com) will be promoting a new company to set up a 3 million tonne per annum (tpa) hot rolled steel coil plant in Orissa.
The project to be developed in phases will involve an investment of Rs3,400 crore in the first phase to build 1.34 million tpa plant. The total investment for building 3-million tpa plant will be around Rs5,000 crore.
TII has signed a memorandum of understanding (MOU) with the Orissa government for allotment of land, iron ore, coal and other infrastracture. The company is also in the process of making technical and financial tie up for the project.
TII has proposed to promote a new company for the implementation of this project subject to necessary approvals. TII is in the process of making technical and financial tie-up for the implementation of this project.
According to TII chairman, M A Alagappan, "The group's experience in manufacturing and handling of steel products spans over 50 years. The demand for hot rolled steel in India is growing at 9 per cent." Compared to the per capita consumption of 400 kg in developed countries, the per capita consumption of hot rolled steel in India is just a little over 32kg.