Tata Steel announced on Friday a major investment of Rs 27,000 crore to increase the crude steel production capacity at its Kalinganagar plant in Odisha from 3 million tonnes per annum (MTPA) to 8 MTPA. This marks the company’s largest single investment in India, as per a statement released by the company.
The expansion will significantly boost the plant’s production capabilities to meet the growing demand across key industries such as automotive, infrastructure, power, shipbuilding, and defence. Additionally, it will benefit sectors like oil & gas, construction, and heavy machinery.
The new blast furnace at the Kalinganagar facility, with a capacity of 5,870 cubic meters, is designed for extended operational life and features an environmentally friendly setup to optimize the steelmaking process. It is the first in India to use four top combustion stoves and two preheating stoves, which will help reduce fuel consumption during hot metal production.
With this expansion, Odisha has become Tata Steel’s largest investment hub in India, with cumulative investments exceeding Rs 1,00,000 crore over the past decade. Tata Steel’s CEO and Managing Director, TV Narendran, inaugurated the new facility, highlighting the significance of the project for the Indian steel industry.
“The commissioning of India’s largest blast furnace at Kalinganagar is a landmark achievement for the steel sector, setting new standards in capacity, technology, and sustainability. This expansion strengthens Tata Steel’s leadership in producing high-end, value-added steel products while driving socio-economic development in the region,” said Narendran.
In a first for Tata Steel, a dry gas cleaning system has been installed to maximize energy recovery from by-product gases. The plant will also feature the world’s largest Top Gas Recovery Turbine (TRT), capable of generating 35 MW of power, which will recover an additional 10% of energy. Additionally, an evaporative cooling system, used for the first time in an Indian blast furnace, will reduce water and power consumption by approximately 20%.
Narendran emphasized the company’s commitment to supporting India’s self-reliance and sustainable industrial growth. “This investment aligns with India’s vision for increased private sector involvement. We are grateful to the Government of Odisha for their unwavering support and commend the efforts of our employees and partners in achieving this milestone,” he added. The Phase II expansion at Kalinganagar also includes key facilities such as a pellet plant, coke plant, and cold rolling mill, all of which are equipped with advanced technologies and sustainable processes.
