Revisiting the foundation of Tata Steel Jamshedpur on this day in 1907
The Pride of Jamshedpur The Indian Registration of TISCO August 26, 1907
Jamshedpur, August 25: When JN Tata visited Manchester in 1867, he attended a lecture by Thomas Carlyle where Carlyle said, “The nation which takes control of iron, soon acquires control of gold”. This statement had a profound effect on JN Tata who then decided to set up a steel mill in India. However, the mining conditions offered by the government were too restrictive, so nothing came of it. But in 1899, Major Mahon, in a report, recommended promoting the steel industry in India. It changed everything.
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Jamsetji Tata traveled to the United States in 1902 with the aim of establishing relationships and advancing his knowledge of the industry. He met Julian Kennedy, the head of the engineering firm – Julian Kennedy, Sahlin and Co. Ltd, and expressed his desire to establish a steel mill in India. Kennedy then recommended that Jamsetji contact Charles Page Perin, a prominent New York consulting engineer.
Recalling his interaction with Jamsetji, Perin says he was surprised to see a stranger on his doorstep asking him to come to India to build a steel mill. But it was JN Tata’s character and kindness that made Perin say “yes”.
The search for suitable minerals initially eluded the Tatas. But on February 24, 1904, a letter from PN Bose put Tatas on the right track. The letter talked about the good quality iron available in Mayurbhanj State and the availability of coal in Jharia.
In 1905, Perin and CM Weld presented their report on the construction of the steelworks. In September 1905, the Maharaja of Mayurbhanj granted the prospecting license to the Tatas. In 1906, through an official letter, the Indian government declared its intention to help the Tatas by promising to buy steel for a specified period and providing any other assistance that would enable the company to start production.
The day of the foundation
On August 26, 1907, the company was registered in India with an initial capital of Rs 2,31,75,000. This day is now celebrated as Tata Steel Foundation Day.
In 1908, the construction of factories in Jamshedpur started and steel production started on February 16, 1912.
Build a society
Societal well-being has always been at the heart of the company. Tatas introduced facilities in Sakchi, now Jamshedpur, to improve the quality of life of its citizens. The first hospital was established in 1908, and the growth of educational institutions took place in parallel. The city also grew to maintain the growing steelworks – more hospitals, schools, roads and the organization of a better water supply, the economical use of waste to meet the needs of the growing population have been undertaken.
Post-war financial crisis
After the First World War, the demand for steel dropped considerably. There were no tariff laws for the steel industry, which led to foreign steel being sold to India at a lower cost, further eroding Tata Steel’s market. To make matters worse, in 1924 an earthquake struck Japan, the Company’s main customer for pig iron. To save the company from the brink of closure, Sir Dorabji Tata pledged all of his personal wealth, including his wife’s jewellery, to secure the necessary bank loans and keep the company alive.
The Company has taken steps to maintain a progressive relationship with workers. This was further reinforced in 1956 when an agreement with the Tata workers’ union laid the foundations for closer association of employees with management in the running of the industry.
In 1955 Tata Steel signed a contract with Kaiser Engineers to start a two million ton program to improve its capacity. The two million ton program, the largest project then in the private sector, began in 1955 and was completed in December 1958. It provided a secure base for raw materials and service in addition to adding new facilities for steelmaking and rolling.
Additionally, Tata Steel has launched a 4-phase modernization program to modernize the steel plant. Groundbreaking ceremony for the first phase was performed by JRD Tata on December 8, 1980. A new modern, eco-friendly and energy-efficient LD store was commissioned during this phase.
The second phase of modernization moved towards improving ironmaking through technological improvements such as the preparation of raw materials and the use of high sintering in the blast furnace charge. This, in turn, ensured further utilization of the steelmaking potential available after Phase I. The new facilities installed during this phase were a bedding and raw material mixing yard, a new agglomeration of 1.37 MnTPA, a battery of 54 coke ovens and a battery of 3,00,000 TPA Bar and Rod Mill. After the completion of Phase II, Tata Steel’s annual crude steel capacity increased to 2.5 MnTPA.
In the third phase of modernization, the company turned to economies of scale, the pursuit of technological upgrading, high productivity and large energy savings. The facilities included a new 1 MnTPA blast furnace, LD workshop, 1 MnTPA hot strip mill and ancillary facilities such as a 500 TPD oxygen plant, two 300 TPD calcining plants, a calcination of 300 TPD dolomite and a 62.5 MW power plant. plant. From the 1950s to the end of Phase III, hot metal production increased from 1.90 MnTPA to 3.15 MnTPA, crude steel from 2.0 MnTPA to 3.05 MnTPA, and salable steel from 1 .52 MnTPA to 2.70 MnTPA.
In addition to modernization, Tata Steel had set out its vision for the next millennium and embarked on an unprecedented flat product expansion. At first, considering the doubling of the capacity of the Hot Strip Mill and a 1.2 million ton cold rolling mill complex which was commissioned in Jamshedpur in the year 2000.
The continuous focus on modernization has not only improved productivity, but also enabled it to offer a new product line that meets the ever-increasing demands of discerning customers. The Company is now strongly focused on strengthening its product mix for high growth and high returns, in order to become one of the lowest cost steel producers in the world and a dominant player in the markets where it chooses to grow. ‘be.
As the Company celebrates its 116e Foundation Day, Tata Steel has shown a spirit of resilience and an ability to grow despite global changes. It is one of the few fully integrated players, from mining to manufacturing and marketing of finished products.
Today, Tata Steel has an annual crude steel capacity of 21.6 MnTPA in India and the company’s target for this decade is to double the capacity to 40 MnTPA.
Tata Steel is currently accelerating the 5 MnTPA expansion program at its Kalinganagar plant post, the capacity of which will increase from the existing 3 MnTPA to 8 MnTPA, which can be expanded to 16 MnTPA. A 6 MnTPA pellet plant in Kalinganagar will be commissioned in FY23, followed by the Cold Roll Mill complex. Tata Steel is also developing plans to expand its Meramandali site which can be expanded from the current 5.6 MnTPA to 10 MnTPA.
The recent acquisition of Neelachal Ispat Nigam Limited presents a significant opportunity for Tata Steel to not only rapidly restart the million tonne per annum steelworks, but also immediately commence work to build a state-of-the-art long products plant. technology of 4.5 million tons per year. complex over the next few years, and to expand it to 10 million tonnes per year by around 2030.
Additionally, the company is looking to add 0.75 million tonnes of capacity through scrap-based production through its first electric arc furnace to be installed in Punjab, close to the scrap production center of the Auto in Haryana.
Currently, the total iron ore production from the Company’s captive mines at Noamundi in Jharkhand and Katamati, Joda and Khondbond blocks in Odisha is approximately 32 MnTPA. The Company has acquired iron ore reserves of approximately 100 million tonnes with Neelachal Ispat. Tata Steel plans to increase its iron ore production from the current level of 32 million tonnes per year to 48 million tonnes per year by FY25 and then to 60-65 million tonnes per year by 2030.
Tata Steel continues to deploy state-of-the-art solutions to reduce its carbon footprint. The company commissioned India’s first CO2 capture plant from blast furnace gas at Jamshedpur and conducted a first-of-its-kind trial for continuous injection of coal bed methane into the blast furnace to reduce emissions . Additionally, it became the first steel producer in the world to join the Sea Freight Charter to reduce Scope 3 emissions in maritime commerce. The company also deployed its first biofuel-powered vessel to transport imported raw materials and was the first to deploy electric vehicles for transporting finished steel in India.
As Tata Steel focuses on improving production, efficiency, go-to-market strategy and share of value-added products, the company continues to invest in technologies that reduce emissions , promote resource efficiency, facilitate the global transition to a low-carbon economy. the future and improve workplace safety. For the Company, this is responsible growth.