Tata Steel plans to invest Rs 16,000 crore in the 2025 financial year, with the majority of funding aimed at increasing production capacity in India. This decision is driven by an expected growth of 8-10% in the country’s steel demand.
The company plans to commit to completing projects at Kalinganagar, Odisha, with a significant 75% of the capex set to be used for expanding capacity to 8mtpa, and eventually to 13mtpa. The remaining funds will be allocated towards the UK de-carbonisation programme. The company has already laid out plans for doubling its capacity to 40mtpa over the next few years.
Neelachal Ispat Nigam (NINL) is set to expand from 4.5mtpa to 5mtpa in its first phase, with a further expansion to 10mtpa in the pipeline. In addition, a new 2mtpa electric arc furnace (EAF) plant, which produces steel from scrap, will be installed in Chandigarh. In Meramandalli, Odisha, NINL will expand from 5mtpa to 7mtpa, with plans to eventually increase this to 10mtpa.
Tata Steel, headquartered in Mumbai and based in Jamshedpur, Jharkhand, has made significant strides in its acquisition efforts, having already secured 40mtpa capacity. The company is currently in the process of acquiring additional capacity, marking a significant step forward in its expansion strategies.
