Tata Steel Revives Neelachal Ispat, Plans 9.5 MTPA Expansion

Nearly two years since the acquisition of Neelachal Ispat Nigam Ltd (NINL), Tata Steel has managed a spectacular turnaround of the loss-making state-owned steel maker and is now planning a massive capacity expansion.

Tata Steel acquired NINL in 2022 as a bid to consolidate its long products business in India. The Odisha unit was otherwise losing out on account of high inefficiencies, high costs, and poor productivity. Tata Steel has revived operations and put the unit back on track after acquiring it.

NINL is presently running at a capacity of 1 million tonnes per annum (MTPA). In its biggest move, Tata Steel will raise it by 450% to 5.5 MTPA in Phase-I of expansion. Further increase to 9.5 MTPA will be planned in Phase-II.

Tata Steel CEO and Managing Director T.V.Narendran, addressing investors during an investor call, said that hearings on the expansion have been conducted and applications for environmental clearances have been submitted. The company, he went on to say, is now operating on a forward-looking strategy obtaining regulatory approvals before board approvals in a bid to reduce execution delays.

The proposals for both expansion phases are to be brought to Tata Steel’s board this year.

The revival of NINL is a milestone achievement in Tata Steel’s indigenous expansion strategy and is under close observation of the industry, especially in the wake of a sudden spurt in demand for long steel products in the construction and infrastructure sectors.

With its full expansion, NINL can be a leading-scale manufacturing complex in eastern India, providing a substantial buffer to Tata Steel’s total capacity and market share.