India's Tata Steel Limited has approved a capital expenditure of $3.54 billion on its subsidiary Neelachal Ispat Nigam Limited (NINL) which operated a steel mill in eastern state of Odisha, a company statement said on Friday, July 31.
The investment would be riding on expanding the capacity of NINL by 4.8 million mt per year, taking its total capacity to 6.3 million mt. This would ramp up Tata Steel total capacity in operation at 27.4 million mt per year and move towards achieving 40 million mt per year in India, the company said.
“The NINL expansion is central to our strategy to deepen our presence in high margin and branded long products,” T.V. Narendran, CEO and managing director of Tata Steel, said.
The capex on NINL also indicated the company's intent to boost manufacturing capacities in India amidst rising challenges of operating environment in Europe.
