Iran gas, Chhattisgarh coal to fuel Tata Steel plants
The Financial Express — June 22, 2005

While Tata Steel plants in Iran will use the abundantly available gas in that country as an energy source to produce 3 million tonne per annum (mtpa), its 5 mtpa facility in Chhattisgarh will use the huge source of non-coking coal deposits in that state in making steel. Asked recently why Tata Steel would be using the directly reduced iron method of steel making in both Iran and Chhattisgarh, Tata Steel deputy managing director (steel), Dr T Mukherjee, said, "One of the ways to gain competitive advantage in steel production is to find ways to use local raw materials effectively, including energy sources."

He said, "With its abundant natural gas resources the conditions in Iran logically suggest a gas-based route for steel-making. Likewise, the abundant non-coking coal deposits of Chhattisgarh suggest a primarily coal-based route to steel-making." As the coal in Chhattisgarh was not of the metallurgical variety, the steel major would be required to find ways to use coal effectively for steel-making. "Coal based direct reduction is a possibility; we are working to finalise the details of the process route to be adopted," added Dr Mukherjee.

However, at a recent request from the Bangladesh government, where Tata Steel is to put up a 2.4 mtpa steel unit, the company is still considering use of coal as an alternative fuel source (as against the abundantly available gas which was originally reckoned to be the fuel to be used).