Tata Steel Announces Rs 16,000 Crore Capex for Domestic and Global Operations in FY24

19 Jun 2023 , 10:42 AM

Tata Steel, an industry giant, has revealed its plans for a consolidated capital expenditure (CAPEX) of Rs 16,000 crore during the current financial year, as stated by the company’s top management.

The company’s CEO & MD, T V Narendran, and Executive Director & CFO, Koushik Chatterjee, mentioned in the annual report for 2022-23 that Rs 10,000 crore has been allocated for standalone operations, while Rs 2,000 crore has been earmarked for its subsidiaries in India.

The projected capex for the fiscal year 2023-24 will be financed through internal accruals, the executives added. Out of the allocated amount, Rs 10,000 crore will be dedicated to Tata Steel Standalone operations, with a significant portion of approximately 70% being allocated to the Kalinganagar project.

Tata Steel is currently expanding the capacity of its plant in Kalinganagar, Odisha, from 3 million tonnes (MT) to 8 MT. The company officials stated that the remaining Rs 2,000 crore will be invested in value-accretive projects for its Indian subsidiaries, focusing on downstream operations to enhance customer service and improve the value-added product mix.

In Europe, Tata Steel Nederland will spend Rs 1,100 crore on the relining of its blast furnace, with the rest of the capex primarily allocated for sustenance, environmental initiatives, and improvement projects.

During the 2022-23 financial year, Tata Steel had planned a capex of Rs 12,000 crore for its operations in India and Europe, with Rs 8,500 crore allocated for India and Rs 3,500 crore for European operations.

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