Nearly 75 percent of INR 16,000 crore will be spent on ramping up capacities in Europe and India, especially on the completion of projects at Kalinganagar in Odisha. The remaining amount will be spent on its de-carbonization program in the UK.
Jul 8, 2024
Global steel manufacturer Tata Steel has projected its capex at INR 16,000 crore on a consolidated basis, which is intended to be financed through internal accruals for its domestic and global operations during the current financial year.
As per the company, which is among the few Indian steel companies to be fully integrated – from mining to manufacturing and marketing of finished products- it has earmarked INR 10,000 crore towards Tata Steel Standalone operations, out of which the Kalinganagar project will account for approximately 70 percent.
The data was revealed by Mr. T. V. Narendran, Chief Executive Officer & Managing Director, and Mr. Koushik Chatterjee, Executive Director & Chief Financial Officer of Tata Steel.
They said, “Our other Indian subsidiaries currently in an expansion phase with value accretive projects, especially in downstream operations which are important to service customer needs and improve our value-added product mix, will have a capex of about INR 2,000 crore. In Europe, Tata Steel Nederland will incur capex of INR 1,100 crore on the relining of its blast furnace, which is underway. The remainder of the capex is largely allocated towards and will be spent on sustenance, environmental initiatives, and improvement projects.”
The top-ranked officials said the company was making progress towards augmenting the capacities across multiple sites in India, aligned with the objective of achieving its 2030 target of an overall 40 million TPA capacity.
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Tata Steel is committed to the Tata Group’s stated objective of achieving Net Zero emissions by 2045, as part of the group-wide project Aalingana (embrace). Under this project, the Tata Group is focused not just on the decarbonisation of businesses and value chains; but also applying a systemic, circular economy approach to reduce resource use and waste; and preserving and restoring the natural environment.
Tata Steel’s approach and pace of decarbonisation will be calibrated for each location based on the local regulatory framework, government support, and the willingness of customers to pay for higher-cost green steel, they added.
