Bhubaneswar: Tata Steel Board has cleared the capacity expansion proposals for Nilachal Ispat Nigam Ltd (NINL) and Tata Steel Meramundali plants in Odisha.
The Board has accorded in-principle approval for the 4.8 MTPA capacity expansion at Neelachal Ispat Nigam Limited.
This is Phase 1 of the capacity expansion in NINL and will enable Tata Steel to further expand the long products portfolio especially in the highly profitable retail space and capitalize on the growth of construction sector in India through new products and solutions.
Tata Steel ED & CFO Koushik Chatterjee had recently said that the preparation for the NINL was in full speed on multiple fronts, be it site planning, eqipment & technology supplier contract, regulatory clearances.
As part of further enhancing the finished steel capacity in the flats products, the Board has approved the funds required to undertake the design and engineering work to set up of a 2.5 million tons Thin Slab Caster and Rolling facilities at Tata Steel Meramandali and also progress on seeking all regulatory approvals for the expansion. This will expand the finished steel capacity particularly of thinner gauge products by 2.5 MTPA.
Tata Steel Wednesday has also signed definitive agreements to acquire 50.01% stake in Thriveni Pellets Private Limited (TPPL), subject to regulatory approvals. TPPL owns 100% stake in Brahmani River Pellet Limited (BRPL), which operates a 4 MTPA pellet plant at Jajpur, Odisha along with a 212 Kilometer slurry pipeline LMEL holds the balance 49.99% stake in TPPL.
The Tata Steel Board which met on Wednesday affirmed the long-term growth strategy prioritizing investments’ in areas such as volume growth, value added downstream portfolio, mining assets and infrastructure to serve the needs of the India business and new to the world low carbon low capital intensity process technologies for sustainable steel making of the future.
In line with this strategy and following the recent decision to consolidate the holding in Tata Steel BlueScope Private Limited, Joint Venture in the color coated business for construction, the Board today approved the plan to set up a 0.7 MTPA Hot Rolled Pickling and Galvanizing Line (HRPGL) at its existing Cold’Rolling Complex in Tarapur, Maharashtra. This willbe ‘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.
As Maharashtra aims to grow to a USD 1 trillion economy in the near future and to cater to the growing demand of customers in Western and Southern India, Tata Steel has signed a MoU with Lloyd Metals & Energy Ltd to partner in the areas of iron ore mining, logistics including slurry pipeline, pellet and steel making. Both companies will jointly explore the following opportunities in the Gadchiroll district of Maharashtra, a) operate mining concessions and associated infrastructure, with the objective to increase iron ore production and be a prominent player in this growing region developing as a new iron ore hub of India, b) development of a greenfield 6 million tons steel capacity by Tata Steel in two phases andc) strategic cooperation in the proposed integrated steel projects already being developed by Lloyds Metals & Energy Limited (LMEL) in Gadhchiroli. All proposed initiatives are subject to further detailed evaluation, due diligence, and receipt of requisite internal and regulatory approvals.
Tata Steel has been operating its pilot plant on HIsarna technology for a decade in its Ijmuiden plant. Hlsarna technology is a low carbon technology that uses inferior quality iron ore, eliminates the usage of coke and also uses steel slag in its process, hence making it a sustainable technology for the future. In the last couple of years, Tata Steel along with a large global steel company has been jointly running trials in the IJmuiden Pilot Plant. The Board today reviewed the progress of the trials, reviewed the scalability opportunities of the technology and have given the approval to commence engineering work and to commence regulatory approval process to set up a demonstration plant around 1 MTPA capacity in Jamshedpur. Tata Steel owns the global intellectual property rights of the HIsrana process technology, and this is one of the key focus areas in the new technology space for the Company:
