Tata Steel will raise its capacity to 7 million tonnes by 2007 and to 15 million tonnes by 2010 through a combination of capacity addition at its existing plant at Jamshedpur and new operations in India or overseas. It currently produces 4 million tonnes of steel annually.

Speaking to the media in Jamshedpur, Tata Steel managing director B Muthuraman said the capacity at Jamshedpur would be 7 million tonnes per annum (mntpa) by 2010 and the balance would be at coastal locations in India and at least one overseas location.

Muthuraman said the locations under study overseas included China. Singapore, Malaysia, Vietnam and the Ukraine.

"Company chairman Ratan Tata is in China today," he pointed out.

There have been reports in the international media about a possible alliance between Tata Steel and the Shanghai-based Baosteel Corporation.

The Chinese giant is keen on partnerships with entities owning iron ore mines for joint venture steel plants close to mines. Tata Steel has both iron ore and chrome ore mines besides coal mines.

Within India, Tata Steel is looking at the viability of a steel unit at Dhamra, where it plans to set up a minor port in partnership with Larsen & Toubro.

Indicating that Orissa was a good location as any for a new steel plant, Muthuraman said the port at Dhamra would handle existing Tata Steel cargo as well as steel export shipments.

Tata Steel and L&T will invest Rs 1,400 crore (Rs 14 billion) in the first phase of the port project to build a facility in three years to handle around 13 million tonnes of cargo.

When questioned about Gopalpur, the coastal town in Orissa where Tata Steel had acquired land for an aborted steel project, Muthuraman said, "The project is on but problems relating to rail connection and water supply are yet to be solved."

To feed its domestic steel operations, the company has also applied for fresh mining leases for iron ore.

To enhance its fuel and coke supply, Tata Steel will invest Rs 350 crore (Rs 3.5 billion) in the first phase to set up a 600,000 tonnes per annum coke over battery at Haldia in West Bengal.

Meanwhile, Jusco, the Tata Steel subsidiary set up to run the utility services in Jamshedpur, is a business with very high growth potential and will recruit mid to upper level managers soon to handle expanding business volumes.

Managers would be handpicked from Tata Steel to lead operations at Jusco, Tata Steel managing director B Muthuraman said.

Jusco would begin power distribution from March 1 of this year. It would also be taking up the entire payroll operations of Tata Steel soon. The company has more than 40,000 employees.

At a later stage, it would bid for payroll and other servioces for other Tata companies, beginning with those located in Jamshedpur.