Tata Steel Board Approves Capacity Expansions, Targets 40 MMTPA Production by 2030
Tata Steel Limited’s Board of Directors has approved capacity expansions and project developments across Odisha and Maharashtra as part of its long-term growth strategy in India. The approvals support Tata Steel’s target to increase its domestic steelmaking capacity to 40 Million Metric Tonnes Per Annum (MMTPA) by 2030, from the current 22 MMTPA. However, the company has not disclosed the total investment outlay for this expansion.
Capacity Expansion and Project Development in Odisha
A major portion of the Board’s approvals includes capacity expansion at Neelachal Ispat Nigam Limited (NINL) in phases. Under Phase 1, NINL’s production capacity will be increased to 4.8 MMTPA from the current 1.1 MMTPA. According to several media reports, in Phase 2, Neelachal Ispat Nigam capacity will be further expanded to 9.5 MMTPA. This expansion is expected to be completed within a period of 3 to 4 years.
Tata Steel had acquired Neelachal Ispat Nigam in July 2022 for Rs. 12,100 crore. The company manufactures pig iron, steel billets, coke, crude tar, and ammonium sulphate.
In addition to capacity expansion at NINL, the Board has approved funding for design and engineering works. The approval is for establishing a 2.5 MMTPA Thin Slab Caster and Rolling Facility at Tata Steel Meramandali, an integrated steel plant in Dhenkanal district, Odisha. This project is expected to enhance Tata Steel’s finished steel capacity for thinner-gauge flat products, strengthening its presence in value-added flat steel segments.
Further supporting raw material integration, Tata Steel will also acquire a 50.01% stake in Thriveni Pellets Private Limited (TPPL) for Rs. 636 crore.
Downstream Growth and Strategic Initiatives in Maharashtra
Alongside its investments in Odisha, Tata Steel has approved plans to expand downstream and value-added capacities in Maharashtra. The Board has approved the establishment of a 0.7 MMTPA Hot Rolled Pickling and Galvanizing Line (HRPGL) at the company’s existing Cold Rolling Complex in Tarapur, Maharashtra. As per the company, “This will be a ‘first-of-its-kind’ facility in India and will enable Tata Steel to meet the requirements of its automotive customers for import substitution, while further consolidating its leadership position in this segment”.
In addition, Tata Steel has signed a Memorandum of Understanding (MoU) with Lloyds Metals & Energy Limited (LMEL) to jointly explore opportunities in iron ore mining, logistics infrastructure, pellet production, and steel manufacturing. The proposed collaboration will focus on projects in the Gadchiroli district of Maharashtra and includes plans to develop a 6 MMTPA greenfield steel manufacturing plant.
About Tata Steel Limited: Tata Steel is a top steel manufacturing company, with operations across India, Europe, and Thailand. In India, it had a turnover of Rs. 2,20,083 crore in FY5, with operations spanning mostly in Jharkhand, West Bengal, and Odisha.