India's Tata Steel Plans $18 Billion in Project Spending

---

Researched by Industrial Info Resources India (Delhi, India)--The world's seventh-largest steelmaker, Tata Steel Limited (BSE:500470) (Mumbai), is investing $18.05 billion in steel manufacturing projects across India. The company has a global crude steel production capacity of 31 million tons per year and aims to produce 100 million tons per year by 2015-16.

In India, the company has a capacity of about 7 million tons per year, which very soon will hit 12.7 million tons per year through expansion projects at its Jamshedpur mill. In addition, greenfield projects are coming up at Orissa and Jharkhand and a planned one in Chattisgarh.These projects will add up to 12 million tons per year of production capacity when completed. The cost incurred for these steel projects and associated captive power plants is about $18 billion.

Click here for a listing of active Tata Steel projects being tracked by IIR and their associated total investment values.

India, with 80 million tons per year of steel production capacity, is the fourth-largest steel producer in the world, behind China, the U.S. and Japan. Growth trends suggest that India will be the second-largest steel producer in the world by 2014-15, with production capacity of about 120 million tons per year.

Major infrastructure and construction projects are helping drive steel demand in India. The annual demand rate for steel in India is currently increasing 15-20% per year, whereas the production growth is about 9%, clearly showing a deficit in production capacity. Tata's projects will substantially assist in reducing the gap between the demand and supply for steel.

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.