We never bribed Raja: Tata

Tata Group chairman Ratan Tata said neither he nor the Group paid any bribe to former telecom minister A Raja.

Tata Group chairman Ratan Tata on Wednesday said neither he nor the Group paid any bribe to former telecom minister A Raja.

Responding to allegations that the Tata Group bribed the former telecom minister in return for favours in the 2G spectrum allocation,Tata said that not even one paise was paid to Raja. On Tuesday,Swan Telecom promoter Shahid Balwa had alleged that a donation of Rs 20 crore was made by the Tata trust to a hospital in the former ministers constituency.

We do not make payments in advance. The statements made in courts are to create a diversion, Tata said while replying to a shareholders query at the Tata Steel annual general meeting here today. We have never been asked or given any sort of bribe or gratification to A Raja or anybody else. I am sure,when the dust settles,things will become clearer. Unfortunately,there are no defamation laws in this country. But in a court they can make any statement they like, Tata said.

Meanwhile,Tata reiterated that the steel markets in the developed world,especially the US and Europe,remains challenging and the key driver for growth for steel makers like Tata Steel would be the Asian markets. The current uncertainty arising out of the debt crisis in the US market,and Japans recent devastation are matters of concern for the steel industry worldwide,he said.

Infrastructure and construction will drive growth for the steel industry in India, Tata said at the companys annual general meeting. India has a steel capacity of 68.3 million tonnes mt,but this is still just 10 per cent of Chinas capacity of 626 mt, Tata added. Globally,the steel industry produces 1.4 billion tonnes of steel.

The global economy continues to recover on a gradual basis,and the emerging markets provide a high economic growth. Developed markets are improving but the growth is slower. Sustainability in demand will depend on how the government deals with the fiscal deficit,inflation,and job creation,Tata said. Shares of Tata Steel were down marginally to close at Rs 563.10 on the BSE on Wednesday.

Tata Steels Jamshedpur plant expansion to 2.9 mt will be commissioned by the end of FY2012. Work at the 6 mt greenfield plant in Orissa is in progress.

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Tata Steel UK Limited Tata Steel had recently said it will sell certain assets of Teesside Cast Products TCP to Sahaviriya Steel Industries UK Limited SSI,a subsidiary of Thailands largest steel producer,in a deal valuing the business at 469 million around Rs 2,110 crore. Tata Steel had to partially shut its Teesside plant in February last year following the decision of four steel slab buyers to pull out of a 10-year contract.