Tata Steel chalks out Rs 14,000-crore capex

Steel major Tata Steel has chalked out a Rs 12,000 crore to Rs 14,000 crore capital expenditure plan to fund expansion of its Kalinganagar plant during the current financial year.

“We have a capex plan of Rs 12,000 crore to Rs 14,000 crore in current fiscal year, which will be mainly funded through internal accruals. The 3 million tonnes (MT) expansion at Kalinganagar will need significant capital,” Tata Steel Chairman Cyrus Mistry told shareholders at the company’s AGM.

 One of the key pillars of the company's strategy is to continue to build capacity in India which is globally competitive. In Jamshedpur, as part of the 2.9 million tonnes per annum expansion, the company achieved almost a million tonnes of additional production and sales during the financial tear 2013-14, Mistry said.

After completion of expansion plans, the company's capacity would increase from the present 9.5 million tonnes to 13 MT, which includes 10 MT capacity of Jamshedpur plant and 3 MT of Kalinganagar unit.

The company is also aggressively pursuing completion of the first phase of its 6 million tonnes per annum greenfield project in Kalinganagar, with stagewise commissioning expected to start by end of financial year 2014-15, Mistry said.

The company had divested its entire stake in its joint venture Dhamra Port Company to Adani Ports and SEZ.