Tata Steel to Spend ₹10,000 Crore Annually to Hit 40 MTPA by 2030, Focuses on Global Expansion and Decarbonisation

Tata Steel will keep spending about ₹10,000 crore each year to increase its production capacity to 40 million tons per annum (mtpa) by 2030, said N Chandrasekaran, chairman of Tata Sons Limited, at Tata Steel’s annual general meeting on Monday.

Investing in Expansion

Chandrasekaran mentioned that the company is investing in expanding its capacity and transitioning to new steelmaking methods to reduce carbon emissions. He assured shareholders that Tata Steel will continue to use the right strategies and technologies to achieve its expansion and decarbonisation goals.

Kalinganagar Plant Expansion

Tata Steel is currently expanding its Kalinganagar plant from 3 mtpa to 8 mtpa. The company plans to increase this capacity by an additional 5 mtpa in the third phase, reaching a total of 13 mtpa. Additionally, NINL, a subsidiary of Tata Steel, will expand from 1 mtpa to 5.5 mtpa in the coming years.

New Projects and Debt Management

A new 0.75 mtpa scrap-based low-carbon electric-arc furnace in Ludhiana is expected to be operational by 2026, which will help Tata Steel increase its long product portfolio. The company aims to complete its expansion within the next 8 to 10 years, while also reducing its debt every year using excess cash flows. Tata Steel plans to maintain a debt-to-Ebitda ratio below 3.

International Site Transformation

Chandrasekaran also said Tata Steel will continue to focus on transforming its international sites. In the UK, the second blast furnace is likely to shut down by September due to safety concerns. This will be replaced with electric-arc furnaces of the same capacity through a £1.25 billion investment in collaboration with the UK government. He mentioned that the change in the UK government has not affected ongoing discussions regarding Tata Steel UK.

The company is also in talks with the Dutch government for financial and policy support for a major decarbonisation plan, which involves replacing one of the two blast furnaces with hydrogen-based direct reduction of iron (DRI) technology.