Tata Ryerson's plan to take over the stockyard of  Tata lron & Steel Co (Tisco) may depend on the implementation of the single value-added tax system (VAT) throughout the country.

"We have plans to complete the takeover of all the stockyards and warehouses of Tisco this fiscal. However, much will depend on the implementation of VAT throughout the country," Tata Ryerson's managing director, Mr Sandipan Chakravortty, told FE. Tata Ryerson Ltd, is a 50:50 joint venture promoted by Tisco and Ryerson Tull of USA, which is the largest metals distributor in North America.

At present, Tisco has 16 stockyards spread over the country, and this takeover will be part of the company's Rs 100-crore new  investment plans but will exclude its plan of making a foray into processing of long products. A multiple VAT system will cost more to the company for transferring products from one location of the company to the other, since these stockyards and warehouses are located over a number of states. It is speculated in the industry circles that VAT is not likely to be implemented in the country before the parliamentary elections. Mr Chakravortty said the number of stockyears and warehouses will be rationalised following the takeover. The number may go down to five. Apart from Jamshedpur, the four other stockyards will be at Sankrail in West Bengal, Nagpur, south and near Delhi.

Tata Ryerson at present has hot rolled (HR) coil processing facilities at Jamshedpur and Pune and cold rolled (CR) coil processing facilities at Jamshedpur. Although, the company started its operations with an intention to process Tata Steel products, it is now processing products of other steel companies, mainly of the Steel Authority of India Ltd (SAIL) and Ispat Industries Ltd.

Mr Chakravortty said that the company also plans to go for long product processing keeping in mind the growing construction activities.