Tata Steel expects the domestic demand for steel to grow 11% in the current financial year on the back of a strong push in infrastructure building by the government.
The company?s managing director HR Nerurkar said rising interest rates would not have much impact on the construction activities so the steel sector would not be adversely hit. The Reserve Bank of India (RBI) has raised the lending rate several times since March last year in a bid to contain inflationary trend in the economy.
?There is a bit of concern on inflation. It is not as serious as a crisis. There will be bit of impact. We don?t see any big problem. The situation is not alarming at all,? Nerurkar told reporters.
The leading steel manufacturer expects the GDP to expand by 8-9% in 2011-12, making it feasible for the steel sector to grow by 11% during the year. The demand for steel grew by 10% to 65 million tonne.
He said the demand for steel would be greatly pushed if the government comes out with a policy on ultra steel projects on the lines of the power sector. ?We would certainly like to build mega steel plants,? Nerurkar said.
On acquiring raw material bases overseas, he said Tata Steel plans to bid as and when the opportunity arises. The company is looking for new mines in the overseas markets, given the trend of rising raw material costs in the world market.
?We are an early stage investor. We want to buy assets which are in their early stage of development…we make them operational,? Tata Steel chief financial officer (CFO) Koushik Chatterjee said.
Tata Steel recently sold its entire 26% stake in Australian coking coal mining company Riversdale for $1.1 billion to mining major Rio Tinto.