Jamshedpur, Aug. 20: Tata Steel’s initiative to float a new state-of-the-art utility company might soon take shape.

The steel major has applied for registration of the Jamshedpur Utility and Services Company (Jusco) with the Centre’s registrar of the companies. Registration is mandatory for any new outfit to function.

In June, Tata Steel announced that it would form a separate company that would look after the non-core business activities.

Managing director of Tata Steel B. Muthuraman had said Jamshedpur Utility and Services Company would take shape within three months and it would serve the company in an effective manner. He also made it clear that Jusco would be a cent per cent subsidiary of Tata Steel.

“We have received the application from Tata Steel for registration of Jusco under the Companies Act,” sources in the office of the registrar of companies told the The Telegraph.

“After verifying all the mandatory aspects, we will register Jusco after which the company can start functioning,” a senior registrar of companies official said. According to sources, processing of the application would be completed soon.

Once Jamshedpur Utility and Services Company starts operating, it will take over such activities of Tata Steel which are not in the core sector. The company feels that Jusco would be able to provide quality service in a more economical manner.

“At present, stiff global competition has made it imperative for the company to focus on the core business activities of making steel and allied products. If a company is involved in carrying out various unrelated functions, the focus is lost,” a company spokesman said.

Sources said after getting the approval from the registrar of companies, the memorandum of understanding would be framed and signed between Tata Steel and Jusco.

“The strength of JUSCO would be decided later. But the company could shift some of the employees from Tata Steel to the new company,” sources said.

Tata Steel officials hinted that Jusco would render services not only to the steel major but also to several other companies in the city.

“Moreover once it consolidates base in the city, it would look to expanding its market base and render services to other parties outside the city,” officials said.