Friday, December 9 2005 19:33 Hrs (IST) - World Time -

Kolkata: Tata Group has identified South Africa as their 'target destination' for their international operation and is also looking at acquiring a sick steel plant there.

The group has firmed up business plan to enter in ferro chrome steel, telecom and hotels, Tata Sons director J J Irani told newsmen here.

"South Africa is our target destination and we have received second operator license through VSNL in South Africa and we are working on it," Irani said while speaking about new overseas projects in South Africa.

The telecom regulator of South Africa Icasa had awarded second fixed-line license to increase competition and reduce price for the services to its customers.

The service of VSNL is expected to reduce the fees for consumers, which is about 400 per cent higher than comparable service, he said.

It is expected that the group would pump in about USD 230 million for the telecom business and likely to go operational by first quarter next year.

When asked about the reports that Tatas are contemplating acquiring Highveild Steel in South Africa, Irani said, "I can't deny it, yes we are looking at the closed unit which has not been doing well."

"We are open to inorganic growth and thus we keen for acquisition," Irani said.

Tata Steel is in talks with Anglo American, which owns 79 per cent stake in Highveld Steel. Mittal Steel is also one of the contender for the closed plant.