In November 2018, Tata Steel initiated the second phase of expansion for its Kalinganagar project in Odisha, with the goal of elevating the production capacity from 3 million tonnes per annum to 8 million tonnes. This ambitious expansion project required a substantial investment of Rs 23,500 crore.
Tata Steel is on track to complete the expansion of its Kalinganagar project in Odisha by the end of next year, according to Rajiv Kumar, Vice President of Operations at Tata Steel Kalinganagar. The second phase of expansion, initiated in November 2018 with a substantial investment of Rs 23,500 crore, aims to elevate the production capacity from 3 million tonnes per annum to 8 million tonnes.
This comprehensive expansion initiative encompasses the augmentation of raw material capacity, development of upstream and midstream facilities, enhancement of infrastructure, and the establishment of downstream facilities, including a state-of-the-art cold rolling mill complex. Mr. Rajiv Kumar highlighted that the forthcoming blast furnace, featuring a substantial inner volume of 5,870 cubic meters, will stand as the largest in India.
The second phase of expansion holds strategic significance, poised to substantially boost the production of flat steel at the Kalinganagar plant. This augmentation is strategically aligned to address the escalating demands in key sectors such as automotive, general engineering, oil & gas, lifting & excavation, and other value-added segments across the country.
Regarding the progress of the expansion project, the vice-president noted that approximately 80 percent of the work has been completed as of the current date, and the remaining 20 percent is advancing smoothly. Upon achieving the targeted 8 million tonnes of annual production capacity at Kalinganagar, Tata Steel’s overall output capacity for its operations in India will reach 26.6 million tonnes per annum (MTPA).
Tata Steel’s production capabilities are distributed across various facilities, including 12 MTPA at its Jamshedpur plant (inclusive of 1 MTPA acquired from Usha Martin), 5.6 MTPA at Tata Steel Meramandali (formerly Tata Steel BSL) in Dhenkanal, and 1 MTPA at NINL in Kalinganagar. When questioned about the significance of the ongoing expansion initiative, Kumar emphasized that with the integration of advanced technologies, the Kalinganagar plant is poised to emerge as one of the world’s most cost-efficient producers of steel.
Advancing Ambitions: Tata Steel’s Transformational Expansion at Kalinganagar, Odisha
- Expansion Details: Tata Steel started the second phase of expansion at its Kalinganagar project in Odisha in November 2018. The aim is to increase the production capacity to 8 million tonnes per annum (MTPA), up from the initial 3 MTPA.
- Investment: The expansion project involves a substantial investment of Rs 23,500 crore.
- Completion Target: The company official, Rajiv Kumar, mentioned that Tata Steel is targeting to complete the expansion project and make it operational by the end of December next year (presumably December of the following year from when the statement was made).
- Scope of the Project: The expansion project encompasses various aspects, including raw material capacity expansion, upstream and midstream facilities, infrastructure, and downstream facilities. This includes the installation of a new blast furnace, which is noted as the largest in India with an inner volume of 5,870 cubic meters.
- Production Increase: The expansion’s primary goal is to boost the production of flat steel at the Kalinganagar plant. This increase is intended to meet the growing demands in various sectors, including automotive, general engineering, oil & gas, lifting & excavation, and other value-added segments in the country.
- Strategic Implications: The expansion aligns with Tata Steel’s strategy to cater to the rising needs of key industries in India and position itself as a major player in the steel sector among the other industries.
Tags: Tata steel, Automotive, Expansion, production, infrastructure
