Tata Steel aims to raise value-added Ferro Alloys share to 70-80% to reduce import dependence
New Delhi, July 1
Tata Steel is working to significantly expand its share of value-added Ferro alloys as input to speciality steel products to about 70-80 per cent from the current level of around 20 per cent, as part of its strategy to reduce dependence on imports and strengthen domestic capabilities in high-end steel segments, Sushanta Kumar Mishra, Executive In-charge Ferro Alloys & Minerals Division, Tata Steel Limited toldon Wednesday.
"If you look at the current situation, most of the inputs required for making speciality steel are imported. In the ferro alloys business, including ferrochrome, most value-added products are also imported. Our objective is to replace these imports by expanding the range of value-added products in our own portfolio," Mishra told ANI.
"Currently, around 20 per cent of our product basket consists of value-added products. We intend to increase this to around 70-80 per cent so that future domestic requirements can be met within India," he added.
He was speaking during the 15th India Minerals and Metals Forum. The theme of inaugural session was India's Minerals & Metals Sector: Building Self-Reliance.
Mishra said India's ambition to scale up steel production to 500 million tonnes by 2047 is a "dream for the country," adding that Tata Steel is aligning its growth strategy with this long-term national goal. He said the company currently produces around 24 million tonnes per annum and aims to scale it up to about 40 million tonnes per annum, while maintaining focus on sustainability.
"This is actually a dream for the country and, obviously, Tata Steel, being a major player in steel, is currently hovering around 24 million tonnes. We aspire to reach around 40 million tonnes as part of this journey. It is not only about increasing volumes; we also aspire to be a responsible player, keeping sustainability and the environment in mind while expanding our overall steel capacity," he said.
The Tata Steel executive said reducing import dependence in the Ferro alloys for speciality steels remains a key challenge. He said the company is focusing on building a stronger domestic portfolio to support production of advanced steel products to meet future demand.
He said Tata Steel is also developing new value-added and speciality products, including low-carbon steel, high-chrome products with over 65 per cent chromium content, ultra-low silicon products, and alloys using critical minerals such as nickel.
Mishra called for stronger policy support in the critical minerals sector, including clearer allocation of mining leases and initial incentives for investment in capital-intensive projects. He said critical minerals should not be treated at par with conventional minerals in terms of royalty and policy structure.
"There are two or three key areas. First, there should be greater clarity in the allocation of critical mineral mining leases. Second, there should be initial government support, subsidies and policy incentives to promote investment. Critical minerals should not be treated the same as conventional minerals when it comes to royalty and premium," he said.
He added that such policy support would help accelerate investments in technologically complex and capital-intensive segments of the sector, ultimately strengthening India's self-reliance in critical inputs for steel production.
— ANI
Reader Comments
Impressive long-term vision. As someone who works in supply chain, I know how volatile ferro alloy imports can be. This move will definitely stabilize costs and reduce forex outflow. But hope they also focus on environmental compliance while scaling up.
At last! Someone addressing the elephant in the room - our reliance on imported critical minerals. The government should definitely listen to Mishra's request about differential royalty treatment for critical minerals. You can't treat rare earths like iron ore! 🤔
Bold target of 40 MT by 2047 - but where will the raw materials come from? India's iron ore reserves aren't infinite. And with sustainability commitments, needs careful balancing. Still, if any company can do it, it's Tata with their track record.
This is exactly the kind of strategic thinking we need for Atmanirbhar Bharat. Speciality steel is the backbone of defence, aerospace, and automotive sectors. Reducing import dependence here will have multiplier effects across the economy. Kudos to Tata Steel! 👏
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