Tata Steel is actively considering investing Rs 3,000 crore (US$434 million) in a steel manufacturing facility under its Tata Sponge Iron subsidiary.
The site is anticipated to be for a 1.3-1.5 million mt plant in Joda, Odisha. Its primary facility is already operating in the state. The company has applied to the ministry of environment, forecast and climate change for relevant permits according to the company’s annual report. The first phase may target 0.6-0.8 million mt with the second phase within the following year. Initially, the blast furnace will be established, and the full integrated steel plant is expected after four years.
Tata Sponge Iron would initially source iron ore from parent Tata Steel, but it is also seeking to acquire iron ore and coal mines as they come up for auction.
Tata Sponge Iron is planning to also add 30,000-35,000 mt to its current sponge iron capacity of 390,000 mt annually.