T. V. Narendran, Chief Executive Officer & Managing Director, Tata Steel and Punjab CM Bhagwant Singh Mann at the signing of MoU

Tata Steel plans to commence operations at its newly built Electric Arc Furnace (EAF) in Ludhiana by H1 FY2027 (April–September 2026), according to its analyst presentation for April–December 2025. Hot trials at the 750,000 tonnes per annum facility have already begun. The company has reinforced its commitment to sustainability-led growth, placing decarbonisation and low-carbon steelmaking at the centre of its strategic priorities, as outlined in its 3Q FY26 investor presentation. In parallel, Tata Steel aims to increase scrap usage in its Basic Oxygen Furnace operations.

The company has reiterated its long-term ambition to achieve net-zero greenhouse gas emissions by 2045, backed by a structured roadmap spanning process innovation, renewable energy adoption, circularity measures, and breakthrough technologies.

The Board has also approved a 1 million tonnes per annum demonstration plant based on HIsarna technology in India, designed to reduce emissions by eliminating the need for coke in the ironmaking process. 

The company continues to advance EASyMelt, an alternative ironmaking route using synthesis gas to lower carbon intensity. These initiatives are supported by ongoing collaborations with research and academic institutions to accelerate commercial readiness, the presentation noted. Solid waste utilisation during the nine months under review stood at 99%, compared with 100% in FY2025 (April 2024–March 2025).

Capacity expansion and decarbonisation across India and Europe

In December 2025, the Board granted in-principle approval for a 4.8 million tonnes per annum expansion at the Neelanchal Ispat Nigam Limited (NINL) plant, marking a significant step toward strengthening the company’s long-products portfolio. The proposed development is positioned as a strategic complex aimed at enhancing capacity, improving product mix, and supporting future growth in the long steel segment.

The company is also advancing plans for finished flat steel expansion at the Tata Steel Meramandali plant through the proposed installation of a 2.5 million tonnes per annum thin slab caster and rolling facility. The initiative is intended to strengthen flat steel capabilities while improving operational efficiency and product quality.

Tata Steel is also pursuing growth along the West Coast through a strategic partnership with Lloyds Metals & Energy. As part of its upstream integration strategy, it plans to develop a new iron ore hub in Gadchiroli to secure raw material linkages. Further supporting its long-term expansion roadmap, the company intends to establish a greenfield steel plant in Maharashtra with a planned capacity of 6 million tonnes per annum, reinforcing its footprint in the state and positioning itself for future demand growth.

In Europe, Tata Steel is executing region-specific transition pathways. In the UK, the company is progressing its shift toward scrap-based EAF steelmaking, while in the Netherlands, it continues to work with government stakeholders on emissions-reduction programmes and environmental performance improvements.

India steel demand stays resilient amid softer EU, UK markets

India’s steel demand continued to expand, supported by sustained government spending and stimulus measures aimed at boosting consumption, even as markets in the EU and the UK remained subdued. According to data from the Joint Plant Committee, the European Steel Association, and the World Steel Association, India turned a net steel exporter in October 2025. This was followed by the announcement of a three-year safeguard duty ranging between 11% and 12% in December 2025 to protect domestic producers.

In contrast, European demand was weighed down by seasonal factors and a softer macroeconomic environment, although policy support measures and the Carbon Border Adjustment Mechanism (CBAM) helped improve sentiment. The UK market remained weak amid policy divergence from the EU, continued import pressures, and the impact of US tariffs.