Acquisitions not to affect green field projects :Muthuraman

Jamshedpur, Feb 2(UNI) Tata Steel Managing Director B Muthuraman today said the company would maintain a balance between its acquistion process and completion of upcoming green field projects.

Talking to mediapersons here after acquistion of the Anglo-Dutch steel company Corus, Mr Muthuraman brushed aside all doubts that the acquistion would hamper the prospects of the new projects.

''There should be a careful balance between the acquisition process, green field and brown field projects.''he said.

Mr Muthuraman said the work for Orissa project had already started while the progress of Chattisgarh project was satisfactory. The proposed Jharkhand project would begin soon with assistance from the state government.

About the mode of operations of newly acquired Corus, Mr Muthuraman said a separate committee would be formed, headed by Ratan Tata, to take decision about the functioning of both the companies.

''Despite maintiaining a seperate entity both Tata Steel and Corus will work as one company and with a common vision.'' he said adding that investment in UK and Netherlands would continue.

''Whatever investment Corus has planned, we are committed to fulfil,'' Mr Muthuraman said.

About the company's jump from 56th to 5th position as a steel company in the world, Mr Muthuraman said,''We consider that profit and maintaining of quality are more important aspects than the size of the company.'' Expressing concern over the unhappiness of the capital markets after Tata Steel's investment in Corus, Mr Muthuraman said, ''Share markets are taking short-term view. But by the end of February, the capital markets would realise what good investment we did.'' Mr Muthuraman reiterated that the company set a target to become 100 MT steel maker by 2015. But fulfiling the target would depend upon the opportunity to come in the future, he clarified.

He said the Jamshedpur project would produce 10 MT by 2010 and but it would not exceed beyond that capacity due to lack of space.

To a question, Mr Muthuraman said the company was committed to its Corporate-Social Responsibility (CSR),which has been the strength of the company.

UNI