Tata Steel has restarted expansion work at a pellet plant and cold-roll mill in Kalinganagar, according to local media. The project was stopped due to COVID-19 related restrictions. The Kalinganagar plant’s annual capacity is being expanded to 8mn mt from 3mn mt at a capex of Rs250,000mn ($3,439.57mn).
Managing Director of Tata Steel, TV Narendran said the company will expand capacity at three facilities; namely Angul, Jamshedpur and Kalinganagar to 40mn mt from 20mn mt annually, in an interview to Economic Times. He added, Kalinganagar can grow to 15-16mn mt, Angul to 10mn mt and Jamshedpur to 14mn mt.
These capacity additions will improve the plant’s efficiency and bring down costs, opined Narendran, citing that globally plants that are in the 15-20mn mt range have better efficiencies.
Tata Steel produces 7.2mn mt of crude steel in Q3 FY2021, up 3pc compared to 6.99mn mt in the same quarter of the prior fiscal. The Indian business produced 4.6mn mt of crude steel in Q3 FY2021 up 2.9pc from the prior-year quarter.