Tata Steel doubles down on India with NINL expansion, Maharashtra push

Tata Steel has announced an India expansion blueprint, including an in-principle 4.8 mtpa capacity addition at NINL and an MoU with Lloyds Metals

Reaffirming its long-term growth strategy for India, Tata Steel on Wednesday announced an expansion blueprint, including plans to add 4.8 million tonnes (mt) of capacity at Neelachal Ispat Nigam Ltd (NINL), and to explore a greenfield steel plant in Maharashtra to tap rising demand across western and southern markets.

 

What investment priorities has Tata Steel outlined for India?

 

In a statement, the company said that in line with its stated objective of pursuing prudent capital allocation and profitable growth, Tata Steel will prioritise investments in volume growth, a value-added downstream portfolio, mining assets and infrastructure, and low-carbon, low-capital-intensity process technologies for sustainable steelmaking of the future.

 

What is the NINL expansion plan and why does it matter?

 

As part of this, the board has given an in-principle approval for the 4.8 million tonnes per annum (mtpa) capacity expansion at NINL.

 

This is the first phase of the capacity expansion at NINL and will enable Tata Steel to further expand its long products portfolio, especially in the highly profitable retail space, and capitalise on the growth of the construction sector in India through new products and solutions.

 

What is Tata Steel planning in Maharashtra with Lloyds Metals?

 

Among the other key decisions, the steelmaker — anchored in Jharkhand and Odisha — is now eyeing a manufacturing push into Maharashtra.

 

Tata Steel said that as Maharashtra aims to grow to a $1 trillion economy in the near future and to cater to the growing demand of customers in western and southern India, the company has signed a memorandum of understanding (MoU) with Lloyds Metals & Energy Ltd (LMEL) to partner in the areas of iron ore mining, logistics including slurry pipeline, pellet and steelmaking.

 

Both companies will jointly explore opportunities in the Gadchiroli district of Maharashtra that include operating mining concessions and associated infrastructure, with the objective of increasing iron ore production and becoming a prominent player in a growing region developing as a new iron ore hub for India.

 

What greenfield steel capacity is Tata Steel exploring in western India?

 

Tata Steel will also look at developing a greenfield 6 mt steel capacity in two phases — its first primary steelmaking in western India. It also plans to extend strategic cooperation in the proposed integrated steel projects already being developed by Lloyds in Gadchiroli.

 

All proposed initiatives are subject to further detailed evaluation, due diligence, and receipt of requisite internal and regulatory approvals, Tata Steel said.

 

What are the pellet, flats and downstream projects the board cleared?

 

Among the host of projects, Tata Steel also signed definitive agreements to acquire a 50.01 per cent stake in Thriveni Pellets Private Limited (TPPL) from Thriveni Earthmovers Private Limited (TEMPL) for a consideration of up to Rs 636 crore. The deal is subject to regulatory approvals.

 

TPPL owns 100 per cent stake in Brahmani River Pellet Limited (BRPL), which operates a 4 mtpa pellet plant at Jajpur, Odisha, along with a 212-km slurry pipeline. LMEL holds the balance 49.99 per cent stake in TPPL.

 

As part of further enhancing finished steel capacity in flat products, the board approved funds to undertake the design and engineering work to set up a 2.5 mt thin slab caster and rolling facilities at Tata Steel Meramandali.

 

The company also said that following the recent decision to consolidate holdings in Tata Steel BlueScope Private Limited, its joint venture in the colour-coated business for construction, the board approved a plan to set up a 0.7 mtpa hot-rolled pickling and galvanising line (HRPGL) at its existing cold rolling complex in Tarapur, Maharashtra.

 

This will be the “first of its kind” facility in India and will enable Tata Steel to meet the requirements of its automotive customers for import substitution and further consolidate its leadership position in this segment, the company said.

 

What low-carbon technology move is planned for Jamshedpur?

 

At its IJmuiden plant in the Netherlands, Tata Steel has been operating its pilot plant on low-carbon HIsarna technology for a decade. The board approved setting up a demonstration plant of around 1 mtpa capacity in Jamshedpur.