Tata Iron and Steel, a flagship of Ratan Tata Group, is scouting for a partner to share Rs 1,500 crore (Rs 15 billion) investment on environmental management system upgradation to reduce the level of carbon dioxide generated while manufacturing steel at its plant in Jamshedpur.

"We are looking for a partner to share the burden of investment in this project and in exchange we will offer entire carbon dioxide (CO2) free of cost to the joint venture partner," R P Sharma, environment management head, Tata Steel, told PTI in New Delhi.

Sharma said the investments have been pegged at between Rs 1,000 crore (Rs 10 billion) to 1,500 crore. The project aims at reducing the coke usage for producing steel and one of the way is to convert coal-based boilers to gas-based.

Sharma said that carbon dioxide is a valuable commodity and one can earn good returns by trading it in the international market, and Tisco would not have any share in this.

Tisco is targetting to reduce the carbon dioxide level to 1.7 tonne per tonne of steel produced by 2007.

Asked whether the company had initiated talks with any foreign partner, Sharma said, "We have started the process...some of the foreign companies have been shortlisted and soon we shall have a dialogue with them."

He, however, refused to give details about the foreign companies Tisco has shortlisted.