Posted on 05 Aug 2025
Tata Steel has pushed back the commissioning of its prospective 750,000 tonnes/year electric arc furnace in Ludhiana, northern India to 2027, with construction set to begin this year, Kallanish learns.
This will be the company’s first greenfield EAF project in India. The plant will use locally available scrap and supply finished steel to nearby regions.
Tata Steel previously planned to complete the project by March 2025. However, delays in getting approvals, equipment and site work have pushed the timeline back.
“Since this is Tata Steel’s first EAF project in a new location, some delay was expected,” a scrap trader tells Kallanish. “Building new supply chains and getting clearances takes time.”
The decentralised model is expected to lower transport and handling costs by INR 2,000-3,000/tonne ($24-36/t). Tata Steel says it will also help reduce carbon emissions and serve customers faster.
The company plans to use this model in other regions of India, depending on scrap supply and demand. It also supports India’s broader goals for cleaner steelmaking and recycling.
The Ludhiana plant will contribute to Tata Steel’s target of becoming carbon neutral by 2045. The company is also moving to EAFs at its UK and Netherlands plants.
During a recent investor call, Tata Steel managing director and chief executive TV Narendran mentioned that Ludhiana could serve as a model for regional EAF plants, given the economics work well when scrap supply is stable.
Ludhiana has good scrap availability, robust regional steel demand, and logistics advantages. Located in Punjab, Ludhiana is a hub for metal recycling and engineering industries, ensuring consistent scrap supply. The location also aligns with government efforts to boost scrap-based steelmaking under circular economy goals.
India’s scrap supply is growing as more vehicles and equipment are recycled. The government is building scrap processing centres to improve supply quality. India wants to increase EAF use to meet its energy and climate goals, though blast furnaces still dominate production.
Source:Kallanish
