Favourable post-expansion outlook for Tata Steel

While steel prices continue to be under pressure, Tata Steel is looking at various moves to ensure domestic capacity expansion to 40 million tonnes per annum (mtpa) by 2030 from the current 26.6 mtpa.

- DEVANGSHU DATTA

The board has granted in-principle approval for 4.8 mtpa capacity expansion at Neelachal Ispat Nigam (NINL) with ore requirements to be met from NINL’s captive Koira mine.

The Board has also approved funds for design and engineering of a 2.5 mtpa thin slab caster and rolling facility at Meramandali: The company is also acquiring a majority stake in Thriveni Pellets (TPPL) for a cash consideration of %640 crore. TPPL owns 100 per cent of Brahmani River Pellets (BRPL), which operates a 4 mtpa pellet plant in Jajpur, Odisha, and a 212 km slurry pipeline. This is subject to approval from the Competition Commission of India (CCI). Tata Steel has also signed a pact with Lloyds Metals & Energy (LMEL) for joint exploration of mining operations in Gadchiroli district of Maharashtra, for possible development of 6.0 mtpa greenfield capacity in the state.

The LMEL pact supports the strategy of expanding near demand centres in western India where Tata Steel currently does not have capacity.