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Industry giant Tata Steel is planning a consolidated capital expenditure (capex) of ₹16,000 crore for its domestic and global operations during the current financial year, according to its top management, according to news agency PTI. Out off the planned amount, Tata Steel has earmarked ₹10,000 crore towards standalone operations and ₹2,000 crore for its subsidiaries in India,said the company’s CEO & MD T V Narendran and Executive Director & CFO Koushik Chatterjee.
Industry giant Tata Steel is planning a consolidated capital expenditure (capex) of ₹16,000 crore for its domestic and global operations during the current financial year, according to its top management, according to news agency PTI. Out off the planned amount, Tata Steel has earmarked ₹10,000 crore towards standalone operations and ₹2,000 crore for its subsidiaries in India,said the company’s CEO & MD T V Narendran and Executive Director & CFO Koushik Chatterjee.
“The projected capital expenditure (capex) for FY2023-24 is set at ₹16,000 crore on a consolidated basis which is intended to be financed through internal accruals over the full year,” according to the company’s annual report for 2022-23. Out of this, ₹10,000 crore has been earmarked towards Tata Steel standalone operations of which the Kalinganagar project will account for approximately 70 per cent. The company is in process of expanding capacity of its plant at Kalinganagar, in Odisha to 8 MT from 3 MT.
“The projected capital expenditure (capex) for FY2023-24 is set at ₹16,000 crore on a consolidated basis which is intended to be financed through internal accruals over the full year,” according to the company’s annual report for 2022-23. Out of this, ₹10,000 crore has been earmarked towards Tata Steel standalone operations of which the Kalinganagar project will account for approximately 70 per cent. The company is in process of expanding capacity of its plant at Kalinganagar, in Odisha to 8 MT from 3 MT.
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“Our other Indian subsidiaries, currently in an expansion phase with value accretive projects, especially in downstream operations which are important to service customer needs and improve our value-added product mix, will have a capex of about ₹2,000 crore,” the company officials told news agency PTI.
In Europe, Tata Steel Nederland will incur capex of ₹1,100 crore on the relining of its blast furnace, which is underway. The remainder of the capex is largely allocated towards and will be spent on sustenance, environmental initiatives, and improvement projects.
Tata Steel has planned capital expenditure (capex) of ₹12,000 crore on its India and Europe operations during the 2022-23 financial year. While ₹8,500 crore is for India and ₹3,500 crore for operations in Europe, Narendran had told PTI in July 2022.
In the UK, Tata Steel has had active and detailed discussions with the UK government in relation to the future of its business there. Given the UK’s decarbonisation journey and rising carbon costs, it has been clear that for the continuity of steel making in the long-term, it is necessary for Port Talbot to transition to alternative green technologies.
The discussions are ongoing and at the same time, some of the existing heavy-end assets in Tata Steel UK will reach the end of life over the following few years. The management of Tata Steel UK will evaluate all scenarios with regard to the future configuration of the business and will consult appropriately with various stakeholders prior to relevant strategic decisions being taken.
On June 16, shares of Tata Steel settled 0.48 per cent higher at ₹114.25 apiece on the BSE.Read
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