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Tata Steel outlines major India expansion with new capacity, mining deals and green tech

#Economy#Industrial#India
Last Updated : 13th Dec, 2025
Synopsis

Tata Steel has approved a series of expansion and backward-integration plans to strengthen capacity, secure raw materials and widen its downstream product range. The plan includes raising Neelachal Ispat Nigam Ltd's capacity to 4.8 MTPA, developing a new Thin Slab Caster and rolling facility at Meramandali, and setting up a 0.7 MTPA Hot Rolled Pickling and Galvanising Line in Tarapur. The company also finalised a 50.01% stake purchase in Thriveni Pellets, signed an MoU with Lloyd Metals & Energy for mining and steelmaking opportunities, and advanced work on its low-carbon HIsarna technology.

Tata Steel's board has approved a comprehensive expansion plan aimed at strengthening its long-term operations in India. The company has decided to scale up capacity at Neelachal Ispat Nigam Ltd (NINL), taking its current level of around 1 million tonnes per annum (MTPA) to 4.8 MTPA. This expansion is designed to support the company's long products portfolio, which serves construction-focused and semi-urban markets.


As part of its flat steel strategy, the company has cleared funding for the design and engineering of a 2.5 MTPA Thin Slab Caster and rolling facility at the Meramandali plant in Odisha. In addition, the board has approved the installation of a 0.7 MTPA Hot Rolled Pickling and Galvanising Line at the Cold Rolling Complex in Tarapur, Maharashtra. This line is being developed to meet growing automotive-grade demand and reduce dependence on imported coated steel. It has been described internally as the first of its kind in India for the segment.

To secure consistent raw-material supply, Tata Steel has signed definitive agreements to acquire a 50.01% stake in Thriveni Pellets Private Ltd. Thriveni operates a 4 MTPA pellet plant and a 212-km slurry pipeline in Odisha. This transaction, which remains subject to regulatory approvals, is aimed at ensuring stable pellet availability for the company's manufacturing units, especially as it expands volume and integrates operations.

In another move linked to raw materials and capacity planning, Tata Steel has entered an MoU with Lloyd Metals & Energy Ltd to explore opportunities related to iron ore mining, logistics and steelmaking in the Gadchiroli region of Maharashtra. The discussions include the possibility of operating mining concessions jointly and examining the feasibility of a greenfield steel plant with a potential capacity of up to 6 MTPA to be developed in phases.

The board also reviewed progress on the company's low-carbon HIsarna steelmaking technology. Tata Steel plans to begin engineering work and seek approvals for a demonstration plant of about 1 MTPA in Jamshedpur. HIsarna, which has been tested for nearly a decade at the company's site in the Netherlands, aims to reduce emissions by using lower-grade ore, eliminating coke usage and incorporating steel slag within the process. These steps align with the company's broader focus on lowering the carbon footprint of domestic operations.

The overall expansion strategy covers capacity growth, downstream additions, integrated mining initiatives and investments in sustainable technologies. These measures reflect the company's plan to strengthen its Indian operations, improve supply chain stability and support evolving customer segments across long and flat steel products.

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