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Informist, Monday, Sept. 21, 2026

 

By Astha Oriel and Gunjan Rajput 

 

NEW DELHI – Tata Steel Ltd. is awaiting environmental clearance for the expansion of its Meramandali plant in Odisha as part of its next phase of growth, Chief Executive Officer and Managing Director T.V. Narendran told Informist on Monday. The company has also started work on the next phase of expansion at its Kalinganagar plant, he said on the sidelines of a convention organised by the All India Manufacturers' Association.

 

The country's largest steel manufacturer intends to increase crude steel capacity at the Meramandali plant to 7.1 million tonnes per annum from 5.6 million tonnes per annum. The steelmaker has increased crude steel capacity at the Kalinganagar plant to 8 million tonnes per annum from 3 million tonnes per annum as part of its Phase-II expansion.  

 

"We are constantly working on expansions on our existing sites. We have already said that apart from NINL (Neelachal Ispat Nigam Ltd.), we are looking at expanding the Meramandali plant, which is a Bhushan (Steel) plant we acquired. We are waiting for some environmental clearances. We have also started work on Kalinganagar's next phase of expansion. So, we will continuously work on all these expansions," Narendran said.

 

At Neelachal Ispat Nigam Ltd., a wholly-owned subsidiary of Tata Steel, the company has announced a 4.8-million-tonnes–per-annum capacity expansion at an estimated capital expenditure of INR 338.73 billion. In the company's June quarter earnings conference call with analysts, senior officials said the capacity expansion would take 48 months to complete. This will raise the Neelachal plant's capacity to 6.2 million tonnes per annum at the end of the first phase of expansion, as part of the overall strategy to have annual capacity of 10 million tonnes per year, according to the company. 

 

Narendran said steel prices have increased due to higher coking coal costs and stronger demand. "I think steel prices depend on many factors and depend on external and internal factors. The recent push is for two reasons. One is that coking coal prices have gone up over $60 (per tonne). Then, over the last few months, the aluminium prices, the zinc prices - all these are important inputs for us. They have all gone up. So, there is a cost push," Narendran said, adding that demand from steel-consuming sectors has also increased.  

 

Narendran expects steel prices in Europe to stabilise following the European Union's quota on steel imports. The company manufactures steel in Europe through its facility in IJmuiden in the Netherlands and the Port Talbot plant in the UK. "I think overall, as a producer of steel in Europe, we are happy that the EU has brought down the overall quota from 30 million tonnes. It has brought it down to 15 million tonnes, which gives stability for prices in Europe. But we are happy that for India there is an opportunity to export more. That's good for steel producers in India," he said. 

 

For the June quarter, the company reported a consolidated net profit of INR 23.18 billion on revenue of INR 607.94 billion. On Monday, shares of Tata Steel closed 1.2% lower at INR 183.40 on the National Stock Exchange.  End

 

Edited by Avishek Dutta

 

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