While global steel giants Posco and ArcelorMittal are struggling to get their projects started in Orissa, domestic steel major Tata Steel has said its greenfield project work is going on on a war footing and it is confident of starting production by 2014.

"It is our dream project. The project is gaining momentum...construction is going on on a war footing. Our first phase is expected to be commissioned by 2014-end," Tata Steel's Managing Director, H M Nerurkar, told PTI here Wednesday night.

"We have procured almost all major equipment for the project and plan to procure more equipment soon. We will start our first production at 3 MTPA by 2014 and later we will ramp-up the capacity," he said.

The world's seventh-largest steel-maker by output had signed an MoU with the Orissa Government way back in November 2004 for setting up a 6 MTPA integrated steel plant at the Kalinganagar Industrial Complex in Jajpur district of the state.

The company's Rs 34,500-crore project had earlier run into trouble following stiff opposition from the locals; 14 people were killed in police firing on January 2, 2006, while they were opposing construction of the plant's boundary wall.

"The State Government and Jajpur district administration are very co-operative and all credit goes to them who have been helping us to set up the project," Nerurkar said, adding, "We had a lot of patience... never lost hope for this project."

Earlier, Nerurkar had said the company will make Kalinganagar its second steel city and even better than Jamshedpur.

When asked if Tata Steel would face competition in the state, as Posco and ArcelorMittal also plan to set up their mega plants, Nerurkar said, "I do not think so. Steel demand is high in both domestic as well overseas markets. Besides, competition is a good thing for all."

The company hopes to have a world-wide production capacity of around 31 MTPA by end-this fiscal, of which 18.4 MTPA is in Europe, while India will have 9.7 MTPA and the remaining in South East Asia. It has lined up a capex of USD 2-bilion for capacity expansion in FY 12.

"Going forward, our focus is to make flat steel in India," he said.