Tata Steel plans Rs 16k crore capex in FY24
Of the planned amount, Tata Steel has earmarked Rs 10,000 cr towards standalone operations and Rs 2,000 cr for its subsidiaries in India
New Delhi: Industry giant Tata Steel is planning a consolidated capital expenditure (capex) of Rs 16,000 crore for its domestic and global operations during the current financial year, according to its top management.
Of the planned amount, Tata Steel has earmarked Rs 10,000 crore towards standalone operations and Rs 2,000 crore for its subsidiaries in India, the company's CEO & MD T V Narendran and Executive Director & CFO Koushik Chatterjee said.
"The projected capital expenditure (capex) for FY2023-24 is set at Rs 16,000 crore on a consolidated basis which is intended to be financed through internal accruals over the full year," the executives said in the company's annual report for 2022-23. Of this, Rs 10,000 crore has been earmarked towards Tata Steel Standalone operations of which the Kalinganagar project will account for approximately 70 per cent, they said. The company is in process of expanding capacity of its plant at Kalinganagar, in Odisha to 8 MT from 3 MT.
"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 Rs 2,000 crore," the company officials said.
In Europe, Tata Steel Nederland will incur capex of Rs 1,100 crore on the relining of its blast furnace, which is underway.