Thursday, May 12 2005 09:41 Hrs (IST) - World Time -

Jamshedpur: Tata Steel is planning to set up a new three million tonne plant in Jharkhand as part of its proposed 10 million tonne expansion programme at an expenditure of about Rs 6,500 crore, Jharkhand Chief Minister Arjun Munda said in Jamshedpur last night (May 11, 2005).

"Talks are on with Tata Steel on this new project. The company is looking into it," Munda told reporters on the occasion of completion of Tata Steel's one million tonne capacity expansion.

With this additional one million tonne expansion, Tata Steel's capacity has gone up to five million tonne from the existing four million tonne.

Earlier, speaking on the occasion, Tata Steel managing director G Muthuraman said that the company has spent Rs 2,500 crore for the one million tonne expansion.

He said that the company has lined up Rs 4,500 crore for another two million tonne capacity expansion at the Jamshedpur plant.

Another Rs 6,500 crore would be spent for additional three-million tonne expansion in Jharkhand, Muthuraman said.

The Chief Minister said the new three million tonne capacity would be a part of Tata Steel's plan to raise capacity upto 10 million tonne by 2010.