A history of positive response

The economic liberalisation reforms did away with the Licence Raj. In 1991, after being bailed out of bankruptcy by the International Monetary Fund, the government of P. V. Narasimha Rao initiated several breakthrough reforms, including opening up international trade and investment, deregulation, initiation of privatisation etc. This period was hailed as a breath of fresh air after the tight and rigid control of the licensing policy that was earlier prevalent in the country. India has been on a fast track of economic growth ever since.

The 1991-1992 government policy was a momentous change from the earlier trade controls and restrictions and brought with it a new era of growth for the country. The iron and steel industry became one of the foremost sectors to be opened under the New Economic Policy. Substantial private investment flowed in, with the consequent changes heralding a new beginning for the interplay of free market enterprise in this vital sector. Embracing these new liberalisation measures, Tata Steel, under the guidance and leadership of its senior officers, embarked on a series of modernisation and restructuring initiatives which helped it grow from strength to strength. The full impact of economic liberalisation, which meant that steel could be easily imported, was felt in 1993-94. The Company set targets to reduce costs of production and raise the level of net realisation. This was a turning point for the Company, which was judged Number 1 in the league table of world-class steel companies by World Steel Dynamics in the year 2001.

The Company also began work in earnest on Phase III of its multi-thousand crore modernisation programme and, after the fifth phase of modernisation, was awarded ISO-9000 certification. The Six Sigma programme was introduced thereafter. In addition, as a measure to upgrade quality, a model of the US’s Malcolm Baldrige Awards was adopted under the banner of the JRD QV Awards. Tata Steel Limited (India) is today one of the lowest cost producers of steel in the world.