On the eve of the announcement of the fourth quarterly results for the FY 2018 on Wednesday after market hours, Tata Steel's MD TV Narendran said that the company will take on board all the 5000 employees of Bhushan Steel Ltd. as part of the resolution plan for the company.
A day after the National Company Law Tribunal (NCLT) accepted the bid from the steel major in respect of the debt-laden BSL, MD of the company said while Bhushan Steel is currently operating at a capacity of approximately 3-3.5 million tonne metric, the capacity enhancement to 4-4.5 metric ton can be easily achieved.
Further capacity expansion beyond 5 mt will require capital involvement but this can be done easily upto 8mt.
The comment by Tata Steel MD is likely to lessen the concerns of contractual employees at the BSL unit of Odhisha as workers there apprehended job losses after the proposed takeover goes through.
Tata Steel will finance the acquisition of Bhushan Steel Limited with the company's capital of Rs. 18000 crore and the remaining Rs. 17000 crore will be provided by way of additional debt.
On the demand for steel, Narendran said that it is being pulled in huge amount from the auto space and the quarter on quarter demand for steel is more than 8-9%, which India's steel sector has not witnessed for a long time.