Tata Steel To Invest Rs 8K Cr In Capex On India Ops In FY22: CEO Narendran

Domestic steel giant Tata Steel will invest Rs 8,000 crore in capital expenditure on its India operations during the current financial year, the company's CEO and Managing Director T V Narendran said.

The amount will be spent mainly towards completion of the expansion of the Kalinganagar plant, and expansion of mining operations and recycling business, he told PTI replying to a question related to Tata Steel's plans for India business in the financial year 2022.

This is in addition to the Rs 3,000 crore the company will spend on its European operations to make the business strong, sustainable and enhance product mix.

"Our capex will be broadly Rs 8,000 crore for India. We stand by that guidance.

"A lot of it will be going towards Kalinganagar expansion. We will also be spending on our raw material because we continue to expand our iron ore mining capabilities to support the Kalainganagar expansion. So, in raw material and Kalinganagar...we will cover this Rs 8,000 crore," Narendran said.

Tata Steel is in the process to expand the capacity of its plant in Kalinganagar, Odisha, by five million tonne per annum (MTPA) to eight MTPA.

Recently, the CEO informed that Tata Steel has outlaid a capital expenditure of Rs 3,000 crore for its operations in Europe.

When asked if Tata Steel will explore markets to set up recycling plants and part of the Rs 8,000-crore capex will be utilised for the same, he said the company follows a different business model in scrap.

It is in partnership, he added.

"Whatever we need to spend, it will be part of that; but we also have a different model operating in scrap. There are partners dealing to set up the facilities. They will set up, we will manage the quality and sell the steel. It will be a partnership model," he said.

Narendran also said Tata Steel is looking at western and southern regions as more scrap is available there.

"We have to set up these facilities where more scrap is available. The work is being done by the team," he said.

On August 18, Tata Steel announced commissioning its first steel recycling plant in Rohtak, Haryana.

The plant, having an annual capacity of 0.5 MTPA, has been set up in collaboration with Aarti Green Tech Ltd as a build-own-operate partner.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor