Govt ready to help Tatas finalise deal, if required

NEW DELHI: The government has come out in full support of Tata Group���s takeover of Corus. Finance minister P Chidambaram, commerce & industry minister Kamal Nath, Planning Commission deputy chairperson Montek Singh Ahluwalia, and steel minister Ram Vilas Paswan spoke in one voice on Wednesday, supporting the global ambitions of India Inc.

The current mood in the government goes several steps ahead of the moral backing provided to LN Mittal to take over Arcelor last year. The view of top government managers is that the Corus takeover by the Tata Group was symbolic in reflecting the emerging strength and aspiration of Indian industry.

Hence, the overwhelming support for the takeover, despite the stock market���s negative vibes and apprehensions about overvaluation. The overpowering view was that Ratan Tata has made the nation proud and there were even indications of revising the steel production target of 110 million tonne by 2020.

Mr Chidambaram said the government would be ready to help Tata Steel finalise the deal if any request was made. His statement could mean more than moral backing, indicating that the government will not be a silent observer if any move was made to derail the deal. The takeover reflected the new-found confidence of the Indian industry, he added.

Mr Kamal Nath said the acquisition of Corus by the Tatas has marked the country���s entry into the league of global steel majors. ���The take-over reflects India���s economic and fundamental strengths. Our industry has gained in terms of scale and global competitiveness as it consolidates,��� he said. The commerce & industry minister was the most vocal in supporting LN Mittal when the bid for Arcelor was opposed in Europe. He even took up the issue with European Union���s trade commissioner Peter Mandelson, emphasising that Mittal should not be discriminated against because of his Indian origin.

Mr Ahluwalia said acquisition of Corus was a reflection of the strength of India���s corporate sector to expand globally. ���It (the takeover) would enhance the country���s image and presence in the world market. The deal also shows that globalisation is a two-way street. While the country is inviting foreign direct investment in the market, opening up the economy has also provided room for domestic companies to tap overseas markets,��� he said.

Mr Paswan also utilised the opportunity to claim credit for the UPA government. ���It is the nation���s pride. Entire steel industry should be proud of Ratan Tata. Ever since the UPA Government came into power the steel industry has been booming,��� he said.

Addition of over 19 million tonne capacity to Tata Steel on account of the takeover could encourage increase in the country���s steel production target, Mr Paswan said. Asked about the valuation of Corus, he said: ���Steel is decontrolled and the government has no role in it... this is between two players. I have seen the Corus steel plant. It is one of the best plants, I am happy that an Indian company has a vision to go for such large-scale acquisition,��� he said.

Mr Chidambaram was also candid in lauding Tatas for emerging as winner in the Corus battle. ���We are very happy that the Tatas have emerged as winner. Its an example of new found confidence of Indian industry,��� he said. Indian industry today has the confidence to bid for business abroad, raise resources, purchase and manage those enterprises in foreign countries, he emphasised.

Mr Kamal Nath said that the acquisition also indicated India���s transformation into a major foreign investor, besides remaining an attractive FDI destination. ���Now it is a two-way street. India is not only seeking foreign investment, it is a foreign investor itself. Many of the inhibitions about India are no more there because people look at us with confidence,��� he said. Consolidation in the industry was an important step in global competitiveness, the minister added.