The Business Bytes
BHUBANESWAR, SEPTEMBER 16, 2024 (TBB BUREAU): Tata Steel on Monday said that Odisha is poised to become the company’s largest investment destination following the phase-II expansion of its Kalinganagar plant from 3 million tonnes per annum (mtpa) to 8 mtpa.
The steel giant has invested Rs 27,000 crore in the second phase of the Kalinganagar plant expansion and is nearing the completion of its expanded capacity, according to a company release.
This expansion at Kalinganagar is crucial for Tata Steel’s goal to reach a total capacity of 40 mtpa in India by 2030, the company stated. “The phase-II expansion of Tata Steel’s Kalinganagar plant in Jajpur district of Odisha… will also catapult the eastern state to an enviable position of becoming the single-largest investment destination for the country’s oldest steel maker,” the release highlighted.
The initial phase of the Kalinganagar expansion was completed in 2015 with an investment of Rs 25,000 crore. Additionally, Tata Steel increased its capacity in Odisha through the acquisition of Neelachal Ispat Nigam Ltd (NINL) in 2022, investing Rs 12,100 crore more.
Including the Tata Steel Meramandali (formerly Bhushan Steel Ltd) plant in Dhenkanal district, the company’s total investment in Odisha exceeds Rs 100,000 crore, the release noted.
“Even as the company is on the verge of commissioning its expanded capacity in Kalinganagar (to 8 mtpa), Tata Steel believes that the plant has a further scope to double this to 16 mtpa in the coming years, which will further strengthen Odisha’s role in Tata Steel’s growth journey,” the release added.
Chanakya Chaudhary, Vice President of Corporate Services at Tata Steel, commented, “The abundance of mineral wealth and other natural resources, combined with the large pool of skilled workforce and investor-friendly policy environment has provided significant support for Tata Steel’s ongoing growth and investments in the state. Through our continued commitment, we are helping shape a future-ready Odisha, fostering innovation, sustainability, and progress.”
Tata Steel’s growth in the region is bolstered by expansions in iron ore mines, major infrastructure projects such as the Subarnarekha Port in Balasore district, and the implementation of slurry pipelines for transporting iron ore fines, the release added.
