Tata Steel is in the process of finalising foreign consultants for a techno-economic feasibility study for its titanium project, its managing director B Muthuraman said today. It will appoint the consultants over the next 2-3 months.

Muthuraman said the total cost of the study would be around Rs 12 crore. Subject to the study, the company plans to create a ‘titanium dioxide’ manufacturing facility in stages.

The project one of the number of growth initiatives being explored by the company. These initiatives are expected to make the company’s economic value added positive by 2005-06.

With this objective, Tata Steel has signed a memorandum of understanding with the government of Tamil Nadu for exploring mineral sands in the state.

It is understood that pursuant to the interests in the titanium business, the steel major has also applied for prospecting licence over an area of 5,100 hectare in the districts of Kasaragod and Kannur in north Kerala.

Preliminary discussions have also been held with the Kerala government on the possibility of working together to harness the full potential of the explored and unexplored mineral sands deposits there.

Among the other initiatives, Tata Steel has lined up substantial investments in the ferro-chrome project in South Africa. The company plans to invest close to Rs 250 crore in that project.

Commenting on the company’s performance in the second half of this year, Muthuraman said, typically the second half of the year is better than the first half.

He said the performance of the company was being bettered due to improved product mix, better sales and higher exports.

The company is likely to exceed its production target of 3.8 million tonne. Last year, the company produced 3.59 million tonne. Apparently, its exports have doubled from the last year.

Moreover, successive price hikes since April this year have further boosted the company’s bottom line.

The performance of the company is being reflected in its scrip, which was hovering around Rs 90 today closed at Rs 137.55 on the Bombay Stock Exchange and at Rs 137.9 on the National Stock Exchange.

Volumes at the Tata Steel counter were also significant at 5,10,111 and 15,63,234 on Bombay Stock Exchange and National Stock Exchange, respectively.