NEW DELHI, June 18 (PTI) Industry giant Tata Steel plans to consolidate Rs 16,000 crore capital expenditure (capex) for its domestic and global operations in the current financial year, according to its top management.
Tata Steel CEO and Managing Director TV Narendran and Executive Director and Chief Financial Officer Koushik Chatterjee said that out of the planned amount, Tata Steel has earmarked Rs 1,000 crore for standalone operations and Rs 2,000 crore for its operations in India. subsidiary company.
“The projected capital expenditure (capex) for 2023-24 is set at Rs 16,000 crore on a consolidated basis and is intended to be financed through internal accruals throughout the year,” executives said in the company’s 2022-23 annual report. funds.”
Of this, Rs 10,000 crore has been earmarked for Tata Steel standalone operations, of which the Kalinganagar project will account for about 70%, they said.
The company is expanding the capacity of its Kalinganagar plant in Odisha from 3 to 8 metric tons.
“Our other Indian subsidiaries are currently in the expansion phase of value-added projects, especially in downstream businesses that are important to serve customer needs and improve our value-added product portfolio, with capex of around Rs 2,000 crore,” a company official said .
In Europe, Tata Steel Nederland will incur a capex of Rs 1,100 crore for its ongoing blast furnace relining. Leaders said the remaining capex was allocated and will be spent on subsistence, environmental initiatives and improvement projects.
Tata Steel plans to spend Rs 1,200 crore in capital expenditure (capex) for its India and European operations in 2022-23. Narendran told PTI in July 2022 that while Rs 8,500 crore was for India, Rs 3,500 crore was for European operations.
In the UK, Tata Steel is in active and detailed discussions with the UK government about the future of its business in the UK.
Given the UK’s decarbonization journey and rising carbon costs, it is clear that Port Talbot’s transition to alternative green technologies is necessary for the long-term continuity of steel production.
Discussions are ongoing, and in the meantime, some of Tata Steel UK’s existing heavy-end assets will reach the end of their life in the next few years.
The management of Tata Steel UK will assess all scenarios regarding the future configuration of the business and will consult with various stakeholders as appropriate before making relevant strategic decisions.
“Any decision will also take into account our markets, customers, supply chain impacts and the safe operating practices of our employees,” the officials said.
(This is an unedited and auto-generated story from a Syndicated News feed, the content body may not have been modified or edited by LatestLY staff)