Domestic steel giant Tata Steel will invest Rs 8000 crore in capital expenditures in its operations in India during the current financial year the company's CEO and Managing Director T V Narendran said.
The amount will be spent primarily on completing the Kalinganagar plant expansion, and expansion of mining and recycling business, he told PTI replying to a question related to Tata Steel's plans for the India business in financial year 2022.
This is in addition to the Rs 3,000 crore that the company will spend on its European operations to make the business strong, sustainable and enhance product mix.
"Our capex will be broadly Rs 8,000 crore for India. We stand by that guidance.
"Much of it will go towards the Kalinganagar expansion. We will also spending on raw materials as we continue to expand our iron ore mining capabilities to support the Kalinganagar expansion. So on raw materials and Kalinganagar ... we will cover this Rs 8,000 crore,"Narendran said.
Tata Steel is expanding the capacity of its plant in Kalinganagar, Odisha, by five million tonne per annum (MTPA) to eight MTPA.
The CEO recently reported that Tata Steel has outlaid a capital expenditure of Rs 3,000 crore for its operations in Europe.
When asked if Tata Steel will explore the markets to establish recycling plants and a portion of the Rs 8,000-crore capex will be used for the same purpose, he said the company is following a different business model in scrap.
It is in partnership, he added.
"What we need to spend will be part of that; but we also have a different model that works in scrap. There are partners who are in charge of building the facilities. They will create them, we will manage the quality and sell the steel. It will be a partnership model," he said.
Narendran also said that Tata Steel is looking at western and southern regions where more scrap is available.
"We have to set up these facilities where there is more scrap," he said. "The team is doing the job."
On August 18, Tata Steel announced the commissioning of its first steel recycling plant in Rohtak, Haryana.
The plant, with an annual capacity of 0.5 MTPA, was established in partnership with Aarti Green Tech Ltd as a build-own-operate partner.
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