The Government of Tamil Nadu signed a Memorandum of Understanding (MoU) with Tata Steel today, for Tata Steel's Titanium Oxide (TiO2) Project in Tuticorin District of Tamil Nadu. The MoU was signed by

Mr. Shaktikanta Das, IAS, Secretary, Industries, Government of Tamil Nadu and Mr. B Muthuraman, MD, Tata Steel in the presence of Dr. M Karunanidhi, Hon'ble Chief Minister of Tamil Nadu and Mr. Ratan N Tata, Chairman, Tata Group. The Project outlay is about Rs.2000 crores to Rs. 2500 crores.

Highlights of the MoU:

• An appropriate R & R package shall be provided by Tata Steel as per the R & R       policy of the Govt. for the families who has offered their lands for the project.
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•  Tata Steel to complete the TiO2 Pigment Project in stages.
•  The Government shall provide a four lane road from the Port as a part of infrastructure development for the project.
•  Tata Steel is also open to offering equity stake to other group companies and technology provider as well as for Tamil Nadu govt. undertakings in this venture.
•  The Government shall extend full support to implement the Project expeditiously.

Tata Steel's TiO2 Project is based on the Mineral Sands Deposit located in Tuticorin District of Tamil Nadu. The Project envisages mining and mineral separation, followed by value addition to Synthetic Rutile and TiO2 pigment. The Project area falls in the rain shadow region, with negligible ground water potential and unavailability of river water, hence a Seawater Desalination Plant coupled with a Power Plant is being constructed as an integral part of the Project.

Tata Steel conducted Feasibility Study with the help of an international consortium consisting of M/s Outokumpu,USA, PAH,USA and Larsen & Toubro Limited and with assistance from TZMI, Australia and M N Dastur Company Limited.

The TiO2 Project by itself can provide direct employment to about 1000 people and indirect employment to about 3000 people. This project will have the potential to generate employment for about 10000 local people, if agro related activities are taken up in the reclaimed land.

About Tata Steel:

Tata Steel, established in 1907 by its Founder J N Tata is the flagship of Tata Group, the largest and most respected business house in India .Tata Steel has one of the most modern steel making facilities and is also one of the lowest cost producers of steel in the world. It has been rated as the world's best steel company for the past three consecutive years by World Steel Dynamics. World over, Tata Steel currently has a capacity of around 26 million tonnes per annum including its recent takeover of Corus and has the second largest global distribution network in 45 countries. Tata Steel which has also set benchmarks in the fields of corporate social responsibility and corporate governance firmly believes in improving the quality of life of its employees and the communities it serves.

For further clarification on this release, please contact:

Dr. S Asokan                                        Sanjay Choudhry

Chief, Titania Business Unit             Chief, Corporate Communications

Tata Steel                                               Tata Steel

(044)6696 0050