Kolkata: Pig iron manufacturer Tata Metaliks will invest Rs.750 million over the next two years to construct a sinter plant at its Kharagpur unit, a top company official said here Wednesday.

"The board has approved investment of Rs.750 million for a sinter plant in Kharagpur, which will be built in two years," Tata Metaliks managing director Harsh K. Jha annnounced at the company's annual general meeting.

This is in addition to the ductile iron pipe plant in Kharagpur it is currently constructing in collaboration with Kubota Corp of Japan. The plant is expected to be completed by 2010.

Tata Metaliks, a Tata Steel subsidiary, will also diversify into the small and medium size casting business by setting up a foundry in Kharagpur, company chairman H.M. Nerurkar said.

This business would service emerging industries like automotive and general engineering in eastern and western India, Nerurkar added.

"We don't see many organised players with high technology background in this sector in eastern and western India," he said. The company will finalise the foundry project in the next six months.