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According to relevant media reports, NK K/A70 steel Tata Steel has postponed the commissioning of its electric arc furnace project with an annual output of 750,000 tons in Ludhiana, northern India to 2027.
Construction on the project is scheduled to begin this year. This will be the company's first greenfield electric arc furnace project in India. It will use local scrap steel as raw material and supply finished steel to the surrounding area. Tata Steel originally planned to complete the project by March 2025. NK K/A70 steel However, delays in approvals, equipment, and on-site construction have forced delays.
“This is the first time Tata has built an electric arc furnace project at a greenfield site outside its headquarters, so some delays are to be expected,” said a scrap trader. “It takes time to set up a new supply chain and obtain various permits.”
This “decentralized” model is expected to reduce transportation and handling costs by 2,000-3,000 rupees (about $24-36) per ton. Tata Steel said it will also help reduce carbon emissions while significantly improving the company’s responsiveness to customer needs.
The company plans to replicate this model in other parts of India in the future, depending on the availability of scrap steel and market demand. This is also in line with India's overall goal of promoting cleaner steel production and recycling.
The Ludhiana plant will help Tata Steel achieve its goal of carbon neutrality by 2045. The company is also advancing the construction of electric arc furnaces at its plants in the UK and the Netherlands. In a recent investor conference call, TV Narendran, Managing Director and CEO of Tata Steel, said that the Ludhiana project is expected to become a model for electric arc furnace plants, given the good economic benefits when the supply of scrap steel is stable. Ludhiana has a good supply of scrap steel, strong demand for steel, and logistical advantages. NK K/A70 steel As an industrial center in Punjab, the area has a mature metal recycling and engineering industry, ensuring a stable supply of scrap steel. At the same time, the site selection is also in line with the government's policy direction of promoting a circular economy and encouraging the reuse of scrap steel.
As more cars and equipment are recycled, India's scrap steel supply is growing. The government is building scrap processing centers to improve scrap quality. While blast furnace steelmaking remains the dominant method, India hopes to increase the use of electric arc furnaces to achieve its energy and climate goals.
