Tata Steel Launches ₹3,200 Crore Scrap-Based Electric Arc Furnace
Filing Summary
Tata Steel Ltd has inaugurated its first scrap-based Electric Arc Furnace (EAF) in Ludhiana, India, with an investment of approximately ₹3,200 crore. The facility has a production capacity of 0.75 million tonnes per annum and is designed to achieve CO₂ emissions of less than 0.3 tonnes per tonne of steel. The plant will utilize 100% steel scrap, sourcing around 40% from Tata Steel’s recycling plant in Rohtak, Haryana. This initiative aligns with Tata Steel’s commitment to achieving Net Zero emissions by 2045 and enhancing its presence in the construction segment.
Tata Steel Ltd has inaugurated its first scrap-based Electric Arc Furnace (EAF) in India, located at Hi-Tech Valley, Ludhiana. The facility, which represents a significant development in the company’s sustainable steelmaking efforts, was established with an investment of approximately ₹3,200 crore. The EAF has a production capacity of 0.75 million tonnes per annum and is designed to achieve CO₂ emissions of less than 0.3 tonnes per tonne of steel. This development is part of Tata Steel’s broader commitment to achieving Net Zero emissions by 2045.
The financial commitment for the Ludhiana EAF amounts to approximately ₹3,200 crore. This investment underscores Tata Steel’s strategic focus on sustainable steel production. The facility’s design supports low-carbon steelmaking, utilizing nearly 50% renewable energy. The plant will use 100% steel scrap as its raw material, with approximately 40% sourced from Tata Steel’s steel recycling plant in Rohtak, Haryana. This approach aligns with the company’s efforts to reduce resource intensity while maintaining global competitiveness.
The operational scope of the Ludhiana EAF includes the production of construction-grade steel rebar under Tata Steel’s flagship retail brand, ‘Tata Tiscon’. This initiative is expected to enhance Tata Steel’s market presence in the construction segment. The facility’s use of 100% steel scrap and significant reliance on renewable energy are key technical specifications that support its sustainable production goals. The plant’s design and operational strategy reflect Tata Steel’s commitment to the circular economy and sustainable industrial practices.
In the context of Tata Steel’s broader business strategy, the Ludhiana EAF represents a critical step in the company’s journey towards achieving its sustainability objectives. The plant’s inauguration was attended by key figures, including S Bhagwant Singh Mann, Chief Minister of Punjab, and N Chandrasekaran, Chairman of Tata Steel. The facility’s establishment is part of Tata Steel’s ongoing efforts to align with national and global sustainability imperatives.
The timeline for the Ludhiana EAF’s development and inauguration was marked by the official ceremony held on March 20, 2026. The project involved collaboration with various stakeholders, including government officials and company representatives. Tata Steel’s engagement with local communities through the Tata Steel Foundation has also been a significant aspect of the project’s implementation, focusing on themes such as health, education, and women empowerment.
Tata Steel Ltd is a leading global steel company with an annual crude steel capacity of 35 million tonnes. The company is recognized for its geographically diversified operations and commitment to sustainability, including its goal to achieve Net Zero emissions by 2045. Tata Steel has been acknowledged for its digital transformation efforts and sustainability initiatives, receiving various industry awards and recognitions.