InvestorQ : Can you tell me about the capex plans of Tata Steel for the current year?
Niti Shenoi made post

Can you tell me about the capex plans of Tata Steel for the current year?

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ishika Banerjee answered.
4 weeks ago
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Tata Steel has planned a total capital expenditure of Rs12,000 crore during the current fiscal year FY23 across its India and Europe operations. Out of the total allocation, Tata Steel will invest Rs8,500 crore in the India operations. In India, the focus will be predominantly on the Kalinganagar capacity expansion which will be enhanced from 3MTPA (million tonnes per annum) to 8 MTPA. Steel demand in India is expected to grow exponentially in tandem with the infrastructure demand and Tata Steel is looking at organic and inorganic strategies.

The balance of Rs3,500 crore would be invested in the European operations. However, in Europe, the focus will be more on sustenance, product mix and environment related capex and not so much on capacity expansion. It must be remembered that this capex plan is over and above the Rs12,000 crore that Tata Steel will be paying for the acquisition of Neelachal Ispat which is located in the state of Odisha. It may be recollected that the Neelachal acquisition was done through its subsidiary Tata Steel Long Products Limited (TSLP).

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