Tata Steel Plans Rs 20,000 Crore FY27 Investment, Raises Capex by 38%

Tata Steel is significantly stepping up its investment plans for the current financial year, announcing a capital expenditure (capex) of around Rs 20,000 crore for FY27 , with the majority of the funds earmarked for strengthening its operations in India. The move reflects the company's long term strategy of expanding production capacity, adopting advanced technologies, and building a more sustainable steel business.

The planned investment represents a 38 per cent increase over the Rs 14,559 crore spent during FY26. According to CEO and Managing Director T V Narendran and Executive Director and Chief Financial Officer Koushik Chatterjee , nearly 60 per cent of the total capex will be directed towards projects in India, underlining the company's confidence in the country's growing steel demand.

The investment strategy covers a wide range of projects, including maintenance and operational upgrades, expansion of value added downstream businesses, infrastructure development, adoption of new technologies, and long term growth initiatives. Among the key projects are the expansion of tinplate and wire manufacturing , the Hot Rolled Pickling and Galvanising Line (HRPGL) facility at Tarapur , and the Coke Ovens Project at Jamshedpur . The company will also continue investing in mining operations, supply chain improvements, and sustainability initiatives aimed at making steel production more efficient and environmentally responsible.

At present, Tata Steel has a consolidated steelmaking capacity of more than 36 million tonnes per annum (MTPA) across India, the Netherlands, and Thailand , excluding its 3.2 MTPA UK operations , which are currently under transition. The company has set an ambitious long term goal of increasing its global steelmaking capacity to over 50 MTPA , with most of the future expansion planned in India.

The company currently operates major steel plants at Jamshedpur , Gamharia , Kalinganagar , and Meramandali , while also expanding operations at Neelachal Ispat Nigam Ltd (NINL). Its 4.8 MTPA Phase I expansion at NINL is expected to strengthen its position in the long products segment and meet rising demand from infrastructure and retail markets.

Looking further ahead, Tata Steel aims to increase its steelmaking capacity in India from the current 27.35 MTPA to around 40 MTPA , supported by expansion projects and the transition to lower emission steelmaking technologies. The company has also entered into a strategic partnership with Lloyds Metals & Energy Ltd to develop the emerging Gadchiroli iron ore hub and evaluate the development of a 6 MTPA greenfield steel plant , reinforcing its long term growth ambitions.