UPDATE 1-Tata Steel: Corus may operate at 100 pct by March

* Sees better demand in second-half of fiscal year

* Corus operated at 80 pct capacity in Oct (Adds quotes, background, share price)

By C.J. Kuncheria

NEW DELHI, Nov 4 (Reuters) - India's Tata Steel Ltd (TISC.BO: Quote, Profile, Research), the world's eighth-largest steel maker, expects its European unit Corus to be operating at full capacity by the end of the fiscal year in March, a top official said on Wednesday.

Corus, Europe's second-largest steelmaker, operated at 80 percent capacity in October, Vice Chairman B. Muthuraman told reporters at an industry conference.

The company had been operating at about half its 20 million tonnes steelmaking capacity in Europe for the past few quarters, and joins other steelmakers in predicting better prospects.

"International operations in the second half are looking much better. I can say that second half demand is definitely better in the world as a whole, including in Europe," Muthuraman said.

"We expect to step it up by next month."

Last month, Tata Steel officials said demand in Europe was reviving on the back of inventory rebuilding, but it would take several years to return to previous capacity levels.