Bhubaneswar: The Phase-II expansion of Tata Steel’s Kalinganagar plant in Jajpur district of Odisha will see capacity expansion from 3 million tonnes per annum (MTPA) to 8 MTPA shortly, the company said in a press statement today.
The expansion will also catapult the Eastern State to an enviable position of becoming the single largest investment destination for the country’s oldest steel maker.
Tata Steel said it has invested Rs 27,000 in Phase-II of Kalinganagar plant expansion. The company completed the first phase in 2015 with an investment of Rs 25,000 crore and further ramped up its capacity in Odisha through the acquisition of Neelachal Ispat Nigam Ltd (NINL) in 2022 with an additional investment of Rs 12,100 crore.
Along with the Tata Steel Meramandali (formerly Bhushan Steel Ltd) plant in the Dhenkanal district, Tata Steel’s total investment in Odisha today stands over Rs 100,000 crore, it said.
The ongoing expansion in Kalinganagar will play an important role in Tata Steel’s ambition to achieve its target of 40 MTPA capacity in India by 2030, the company said.
Chanakya Chaudhary, Vice President, Corporate Services, Tata Steel, said: “At Tata Steel, we are proud to partner Odisha in driving India’s industrial transformation. The abundance of mineral wealth and other natural resources, combined with the large pool of skilled workforce and investor-friendly policy environment has provided significant support for Tata Steel’s ongoing growth and investments in the state.”
“Through our continued commitment, we are helping shape a future-ready Odisha, fostering innovation, sustainability, and progress,” he said.
Apart from Jamshedpur, where Tata Steel started its journey 117 years ago, and Gamharia (both in Jharkhand) and Odisha, the company has production facilities in Thailand, the Netherlands, and the United Kingdom, the company further said.
Tata Steel’s presence in Odisha has also significantly improved the state’s industrial landscape through the development of projects like Gopalpur Industrial Park (GIP), developed by Tata Steel Special Economic Zone Limited (TSSEZL).
GIP is strategically located in the Ganjam district in southern Odisha. Built with an investment of Rs 730 crore, GIP today houses not just Tata Steel’s facilities, but other companies including Tata Consumer Products, Anadrone Systems Private Limited, East Coast Overseas, and Odimet Resources.
The complex is also expecting new facilities to manufacture green hydrogen/ammonia facilities, a global-scale Technical Ammonium Nitrate Complex, and an L-CNG Conversion Unit to cater to domestic and industrial gas needs.
Tata Steel’s ambitious growth in this region is supported by expansions in iron ore mines, the development of significant infrastructure projects like the Subarnarekha Port in Balasore district, and the implementation of slurry pipelines for the transportation of iron ore fines.
The steel manufacturing firm has also invested significantly in community development programmes that focus on education, healthcare, and livelihood opportunities for the local population.
The company has implemented various initiatives that have benefited over 2 lakh people in the region. The skill development programmes have trained over 10,000 youth, enhancing their employability and livelihood opportunities and in turn contributing to the region’s economic growth.Even as the Company is on the verge of commissioning its expanded capacity in Kalinganagar (to 8 MTPA), Tata Steel believes that the plant has a further scope to double this to 16 MTPA in the coming years, which will further strengthen Odisha’s role in Tata Steel’s growth journey.