TV Narendran: Tata Steel may increase CapEx to achieve 40 MT target
Steel

TV Narendran: Tata Steel may increase CapEx to achieve 40 MT target

TV Narendran, Tata Steel's CEO and Managing Director, announced that the rising steel pricing and strong demand might lead the company to accelerate its declared capacity expansion objective by a few years.

Narendran said that if the company moves on with its growth plans, it would be able to meet its 40 million tonnes (MT) installed capacity target in India by 2030.

In India, the company's installed capacity is 20.6 MTs. In fiscal year (FY) 2022, the company produced 19.06 MTs.

The company expects to spend Rs 12,000 crore on capital expenditure (CapEx) this FY. It will, however, review the situation after six months and, if necessary, amend it upwards.

Narendran said that they can always go back to the board and ask for more and spend more if the markets are robust, the cash flows are high, and the deleveraging is proceeding as expected.

The MD informed that unlike before when the group just had one location in Jamshedpur, growth could only happen in stages.

Currently, they have two locations in Kalinganagar and one in Angul, so they have the flexibility to expand faster tomorrow if demand in India goes up and profitability remains strong.

He said that, while the corporation is not currently updating the 2030 schedule, it would continue to do so.

The 40 MT plan comprises extending the Kalinganagar plant to around 16 MT capacity from the current 8 MT expansion, including expanding the Neelachal Ispat Nigam (NINL) site to 10 MT capacity from its current 1 MT capacity. The purchase of NINL is likely to be completed by June.

After acquiring Bhushan Steel, the company's capacity was increased from 3 million to 5 MT per year, with the potential to grow to 10 MT.

Currently, Rs 8,500 crore has been set aside for the ongoing growth of Kalinganagar from 3 million to 8 MT per annum, as well as significant expansions in the company's iron ore mining, which it plans to increase from 33 million to 50 MT per annum over the next few years.

The remaining Rs 3,500 crore will be used for operations in Europe. During the year, the business will also invest Rs 12,000 crore to complete the recent acquisition of NINL.

Image Source

Also read: Tata Steel to break ties from its business with Russia

TV Narendran, Tata Steel's CEO and Managing Director, announced that the rising steel pricing and strong demand might lead the company to accelerate its declared capacity expansion objective by a few years. Narendran said that if the company moves on with its growth plans, it would be able to meet its 40 million tonnes (MT) installed capacity target in India by 2030. In India, the company's installed capacity is 20.6 MTs. In fiscal year (FY) 2022, the company produced 19.06 MTs. The company expects to spend Rs 12,000 crore on capital expenditure (CapEx) this FY. It will, however, review the situation after six months and, if necessary, amend it upwards. Narendran said that they can always go back to the board and ask for more and spend more if the markets are robust, the cash flows are high, and the deleveraging is proceeding as expected. The MD informed that unlike before when the group just had one location in Jamshedpur, growth could only happen in stages. Currently, they have two locations in Kalinganagar and one in Angul, so they have the flexibility to expand faster tomorrow if demand in India goes up and profitability remains strong. He said that, while the corporation is not currently updating the 2030 schedule, it would continue to do so. The 40 MT plan comprises extending the Kalinganagar plant to around 16 MT capacity from the current 8 MT expansion, including expanding the Neelachal Ispat Nigam (NINL) site to 10 MT capacity from its current 1 MT capacity. The purchase of NINL is likely to be completed by June. After acquiring Bhushan Steel, the company's capacity was increased from 3 million to 5 MT per year, with the potential to grow to 10 MT. Currently, Rs 8,500 crore has been set aside for the ongoing growth of Kalinganagar from 3 million to 8 MT per annum, as well as significant expansions in the company's iron ore mining, which it plans to increase from 33 million to 50 MT per annum over the next few years. The remaining Rs 3,500 crore will be used for operations in Europe. During the year, the business will also invest Rs 12,000 crore to complete the recent acquisition of NINL. Image Source Also read: Tata Steel to break ties from its business with Russia

Next Story
Infrastructure Energy

REC Transfers HVDC Project to Power Grid

REC Limited has successfully handed over the Special Purpose Vehicle (SPV) for a High-Voltage Direct Current (HVDC) transmission project to Power Grid Corporation of India Limited (PGCIL). This strategic move aligns with the nation's objectives to strengthen its power transmission network. Key Highlights: Project Overview: The HVDC project, under the inter-state transmission system (ISTS) initiative, is a critical component of India's push toward robust and efficient electricity transmission. It aims to handle bulk power transfer across long distances while ensuring minimal losses. Role of RE..

Next Story
Infrastructure Transport

NF Railway Collaborates with IIT Guwahati

The Northeast Frontier (NF) Railway has signed strategic Memorandums of Understanding (MoUs) with IIT Guwahati to foster technological advancements and improve railway operations in the region. This partnership focuses on innovative solutions to enhance safety, efficiency, and sustainability in rail infrastructure. Key Highlights: Purpose of MoUs: The collaboration aims to leverage IIT Guwahati's expertise in technology and research for implementing cutting-edge solutions across railway operations. Key areas of focus include: Automation and digitization in maintenance. Sustainability initiati..

Next Story
Infrastructure Transport

Danapur Division Modernization Plans Revealed

The Railway Board has unveiled ambitious plans for the expansion and modernization of the Danapur Division, a critical hub under the East Central Railway. The initiative focuses on infrastructure development, enhanced passenger amenities, and operational efficiency. Key Highlights: Scope of Modernization: The Railway Board's blueprint emphasizes: Upgrading existing infrastructure to accommodate more passenger and freight traffic. Improving station facilities, such as platforms, waiting areas, and connectivity. Introducing advanced signal systems for safer and smoother operations. Freig..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000