ET cited Mr B Muthuraman MD of TATA Steel as saying that TATA Steel will continue with its INR 27,000 crore plan to expand capacity at Jamshedpur and build a new plant at Orissa, while it will push back other CAPEX plans and Greenfield units at Jharkhand and Chattisgarh due to the liquidity crisis and slow demand.

Mr Muthuraman said that “We are reassessing our CAPEX plans there are some projects that are highly revenue creating like the Jamshedpur and Orissa plans these are on the fast track for us. He said that other projects have been pushed back, adding that plans for building new steel plants in Jharkhand and Chattisgarh, too, have been delayed.”

He said that TATA Steel is planning to expand its Jamshedpur capacity by 3 million tonne to 10 million tonne by 2010 at an estimated cost of INR 12,000 crore. It also has plans to build a 3 million tonne plant at Kalinganagar in Orissa at INR 15,000 crore. The Orissa unit would be the first phase of a 6 million tonne plant.

Mr Muthuraman said that “The financing for these two projects has been completed and land has also been acquired in Orissa.” The liquidity crisis and slow demand has however prompted the company to push back its other plans that includes its units in south-east Asia and Europe.

He said that TATA Steel had proposed to invest about INR 42,000 crore for a 12 million tonne integrated steel plant in Jharkhand, while in Chattisgarh, it would build a 5 million tonne steel plant in two phases at a cost of INR 16,000 crore.