Tata Steel capacity target faces analysts’ scepticism

Beyond Kalinganagar and NINL, company has no announced plans to meet 40mtpa target

- Dipali Banka

Once projects are done, Tata Steel can reach 31-32 mtpa capacity, far from target.

(AFP)

Tata Steel Ltd's ambitious plan to boost steelmaking is facing scepticism, as execution roadmaps beyond its immediate pipeline remain unclear.

At the close of fiscal year 2025 (FY25), Tata Steel's local capacity stood at just 26.6 million tonnes per annum (mtpa), far from the target of 40 mtpa by FY30 that chairman N. Chandrasekaran set in July 2024.

Apart from the two expansion projects already announced for Kalinganagar and subsidiary Neelachal Ispat Nigam Ltd (NNL), the company's road to 40 mtpa remains unclear, analysts said.

The main goal is to ramp up Kalinga-nagar to full capacity utilization of 8 mtpa by the end of 2025. This is a critical step, as the expansion helps Tata Steel serve demand in the near term. The other is to scale up NINL. While its expansion is critical-it will help Tata Steel sell long steel used in construction, infrastructure and appliance industries-the clearances to expand its capacity from 1 mtpa to 5 mtpa are still awaited.

Once both expansion projects are completed, Tata Steel will achieve a capacity of 31-32 mtpa, still far from its target.

Tata Steel did not respond to queries seeking comments.