Tata Steel Commissions India’s First Scrap-Based Electric Arc Furnace in Ludhiana

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Image Courtesy: Tata Steel

Tata Steel has inaugurated its first scrap-based Electric Arc Furnace (EAF) facility in India, marking a major step in its transition toward low-carbon steelmaking. Located at Hi-Tech Valley in Ludhiana, the plant has been developed with an investment of approximately ₹3,200 crore and has an annual production capacity of 0.75 million tonnes.

The new facility is designed to significantly reduce carbon emissions, targeting less than 0.3 tonnes of CO₂ per tonne of steel produced. This development aligns with Tata Steel’s long-term objective of achieving net-zero emissions by 2045 and reflects a broader push toward sustainable industrial practices in India.

The inauguration ceremony was attended by Punjab Chief Minister Bhagwant Singh Mann, Tata Steel Chairman N Chandrasekaran, and CEO & Managing Director TV Narendran, along with senior government officials and company representatives.

Speaking at the event, N Chandrasekaran emphasized that sustainability is becoming central to India’s industrial growth, requiring coordinated action across sectors. He noted that the Ludhiana EAF facility demonstrates the Tata Group’s commitment to building a more resilient and environmentally responsible manufacturing ecosystem.

TV Narendran described the project as a key milestone in the company’s sustainability journey, highlighting its role in advancing circular economy principles. He added that the investment reflects a strategic shift toward technologies that lower resource intensity while maintaining global competitiveness. He also acknowledged the support of the Punjab government in enabling the project.

The Ludhiana plant is designed to operate using 100% steel scrap as raw material, with nearly 40% sourced from Tata Steel’s recycling facility in Rohtak, Haryana. It will also incorporate renewable energy for about half of its power requirements, further reducing its environmental footprint.

The facility will manufacture construction-grade steel rebar under the company’s flagship brand, Tata Tiscon, strengthening Tata Steel’s presence in the construction sector and supporting infrastructure growth in northern India.

Beyond industrial operations, Tata Steel has also focused on community development in the Ludhiana region. Over the past three years, the Tata Steel Foundation has implemented initiatives in nearby communities covering education, healthcare, agriculture, and women’s empowerment.

These efforts include skill development programs for students at Industrial Training Institutes, livelihood opportunities for women, installation of solar-powered street lighting, promotion of sustainable farming practices, and scholarships for meritorious students. With the commissioning of this facility, Tata Steel reinforces its commitment to sustainable manufacturing while contributing to India’s evolving green economy.

Tata Steel is one of the world’s leading steel producers, with an annual crude steel capacity of about 35 million tonnes and a highly diversified global footprint. The group operates across five continents with manufacturing and commercial presence worldwide and reported a consolidated turnover of approximately US$26 billion for the financial year ended March 31, 2025.

A Great Place to Work®–certified organisation, Tata Steel Limited and its subsidiaries, associates, and joint ventures together employ more than 76,000 people globally. The company has set ambitious sustainability goals, including achieving Net Zero emissions by 2045, reinforcing its long-term commitment to responsible growth.