The year 2016 may have been challenging for Tata Steel, but it was successful as well.

Company managing director T.V. Narendran made this observation while extending his warm wishes to the people for the New Year on Sunday after a formal cake-cutting ceremony to usher in 2017 at the lawns of Centre for Excellence.

Narendran along with former managing director of Tayo Rolls R.P. Tyagi cut the cake in the presence of senior company officials, members of Tata Workers' Union, senior citizens, functionaries of Singhbhum Chamber of Commerce and Industry (SCCI) and others.

He thanked the citizens of Jamshedpur and promised to continue the company's commitment of working together with the community during good and bad times. "We look forward to people's support to create a positive environment, where we can work as partners in making the city a better place," he said.

Tata Steel had obtained the necessary environment clearances for producing 11 million tonnes of steel each year, Narendran added. At present, the Jamshedpur plant produces 10 million tonnes a year.

Currently, the focus is on the Kalinganagar project in Odisha, Tata Steel's first greenfield project after Jamshedpur. "We are targeting at 2 million tonnes of steel production at Kalinganagar by this year-end."

Narendran did not mince words when he said demonetisation affected the business of Tata Steel by 5 to 8 per cent in November but also stressed it was temporary. "Demonetisation posed challenges in rural markets and affected transactions between our dealers and customers. We organised training on cashless transactions for our dealers by involving banks like SBI. Things are improving and in January the situation is likely to be normal," he said.

Later, speaking to reporters on the industrial town tag, Narendra said the Supreme Court recently disposed of the case between Tata Steel and state government and now discussions were on between the state government and Tata Steel over the need for a sustainable urban local body. "The format (of the final civic body) will be finalised through discussions. We are co-operating with the state government in this regard," he said.

Tata Steel subsidiary Jusco and several other institutions, including leading trade outfit SCCI, also organised cake-cutting ceremonies and extended warm New Year wishes to Jamshedpureans.