Tata Steel has taken various actions for optimum use of water. The increased emphasis on water recirculation in all process units has contributed to considerable reduction in specific water consumption. Specific water consumption (including that for power generation) has reduced by more than 4.2% in 2003-04. Close monitoring of water losses, recycling of ash, quenching water from power houses, recycling of treated sewage water for steel making and of waste water from various drains have resulted in use of much less water for every tonne of steel produced. The Company does not use any ground water source for industrial or domestic use. The entire domestic consumption of the city of Jamshedpur is 57.6 million m cube/annum of water and is supplied and managed by the Company. The potable water supplied by the Company to the city matches all national and international parameters.

Water sources and related ecosystems/ habitats significantly affected by use of water

The water for industrial and domestic usage at Jamshedpur is drawn from river Subarnarekha. This river is perennial in nature and water abstraction does not have any adverse impact on the eco system. The other source of water at Jamshedpur is a 92.6 square kilometer captive reservoir at Dimna with a capacity of 34.224 million m cube.

Gross make-up water requirement for the Steel Works was an average of 78,400 cum/day during 2003-04. Approximately 900,000 cum/day of water remains in circulation in the steel manufacturing processes through the close circuit units and cooling ponds.