Giving investment in J & K deep thought, economic slump affecting steel sector: Tata Steel MD

Mail News Service

Jamshedpur, Aug 16: Tata Steel MD and CEO TV Narendran hoisted the national flag in the works. Speaking on the occasion, Narendran expressed his best wishes on the occasion of the nation�s 73^rd year of Independence Day celebrations.

Refusing to comment on the scrapping of Article 370 from Jammu and Kashmir he however said that it was heartening to note that Prime Minister Narendra Modi was determined to bring about positive changes in the now twin union states of Jammu & Kashmir and Ladakh. In view of these positives, he said that Tata Steel was contemplating on investment in Jammu & Kashmir.

In his speech, Narendran observed, �The present economic slump is challenging and this is the scenario internationally. However, Indian economy is on strong grounds.  The government is concentrating its efforts to make it stronger. The Centre and RBI are taking several steps in this direction. Our move towards five trillion economy will improve drastically. The economic policies of the USA and China are having an impact worldwide.�

The Tata Steel MD and CEO stated that the company had been playing an important role in nation building through 100 years. He informed that special stress was being laid on containing carbon emission in steel making to eight percent. �But technology does not come readymade.  We are working on this technology to contain carbon emission to eight percent while manufacturing steel. Tata Steel is committed to community development. We want to be a role model for the community through our work.  Extend my best wishes to the Jamshedpur family on the occasion of Independence Day celebrations.�

He further stated that celebration of Independence was a matter of great pride. He said that Tata Steel had been playing a major role in the nation building and development process and would continue to do so always. �The government has expectations of us and we have support expectations from the government.�

TV Narendran said that the slump in the automobile sector was also having its effect on steel making. He said, �Sixty percent of our customers are from the automobile sector. In spite of the slump effects we are sticking to full production. But our customers are in a catch�22 economic situation. In China steel consumption is 990 million tons whereas in India the consumption is just 105 MT. we expect that the budget announcements made may auger well for steel production as steel consumption could well enhance. The current financial instability could affect grade revision and bonus and this factor cannot be ruled out. The Tata Workers� Union is an experienced union and the members definitely understand the current economic status.�

Narendran pointed out that the company was also stressing on avenues of cost cutting. �We are also trying to disinvest in NatSteel and other companies where the profit margin is negligible. But if permission is not given on this score we will focus on operation,� he said.