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Tata Steel Launches India's First Scrap-Based Electric Arc Furnace in Punjab

Tata Steel has inaugurated its first scrap-based Electric Arc Furnace (EAF) in Ludhiana, Punjab, representing a historic move towards sustainable steelmaking. Built with an investment of ₹3,200 crore, the plant has a 0.75 million tonnes per annum capacity and is designed to produce steel with less than 0.3 tonnes of CO₂ emissions per tonne. The facility will use 100% steel scrap as raw material and source nearly 50% of its energy from renewables, supporting the company's goal of achieving Net Zero emissions by 2045. The inauguration was attended by Punjab's Chief Minister and senior Tata Steel leadership, who highlighted the project's role in fostering a circular economy and creating community value.

Key Points: Tata Steel Inaugurates Scrap-Based EAF in Ludhiana

  • ₹3,200 crore investment
  • 0.75 MTPA capacity
  • Targets <0.3t CO₂ per tonne of steel
  • Uses 100% scrap & 50% renewable energy
2 min read

Tata Steel inaugurates its first scrap-based Electric Arc Furnace in India

Tata Steel inaugurates a ₹3,200 crore scrap-based Electric Arc Furnace in Ludhiana, a major step towards its Net Zero 2045 goal.

"The Ludhiana EAF marks a defining milestone in Tata Steel's journey towards achieving Net Zero by 2045. - T V Narendran"

Mumbai, March 20

Tata Steel on Friday inaugurated its scrap-based Electric Arc Furnace facility at Hi-Tech Valley in Ludhiana. This marked a historic milestone in the Company's journey toward sustainable steelmaking.

According to a statement by Tata Steel, "Built with an investment of approximately ₹3,200 crore, the Ludhiana EAF has a capacity of 0.75 million tonnes per annum. Designed to achieve CO₂ emissions less than 0.3 tonnes per tonne of steel, the plant represents a significant step in Tata Steel's commitment to achieve Net Zero emissions by 2045."

Bhagwant Singh Mann, Chief Minister of Punjab and N Chandrasekaran, Chairman, Tata Steel, attended the ceremony along with T V Narendran, CEO & Managing Director, Tata Steel and other senior government officials and Company representatives.

Designed to support low-carbon steelmaking, the plant will use nearly 50 per cent renewable energy. According to the statement released, "The state-of-the-art facility will use 100 per cent steel scrap as raw material, sourcing 40 per cent scrap from the Company's steel recycling plant in Rohtak, Haryana."

The plant would produce construction-grade steel rebar under the Company's flagship retail brand 'Tata Tiscon', which would enable Tata Steel to further augment its market presence in the construction segment.

"As India accelerates its transition towards a climate-resilient future, sustainability has become a national imperative - one that demands urgent, collective action. Tata Steel's Ludhiana Electric Arc Furnace reflects Tata Group's long-term commitment to building a greener, more resilient industrial future," said N Chandrasekaran, Chairman, Tata Steel.

"The Ludhiana EAF marks a defining milestone in Tata Steel's journey towards achieving Net Zero by 2045. It reflects how Tata Steel is rethinking capital investment for circular economy - by backing technologies that reduce resource intensity while remaining globally competitive. We are grateful to the Government of Punjab for its continued support and partnership, and we look forward to creating long-term value for local communities," said T V Narendran, CEO & Managing Director, Tata Steel.

Over the past three years, the Company, through Tata Steel Foundation, has partnered with communities proximate to the plant in Ludhiana in fostering constructive change on core themes of health, education, agriculture and women empowerment.

The key impacts include employability training for students at local Industrial Training Institutes (ITI), introduction of new livelihoods for women, installation of solar-powered streetlights, promotion of climate-resilient agricultural practices, building community-based waste management systems, embedding ecology in learning and infrastructure of schools, and extending scholarship support for meritorious students.

- ANI

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Reader Comments

P
Priya S
Great news for Punjab and for India's green goals. The community development work mentioned - training at ITIs, women's livelihoods, scholarships - is just as important as the plant itself. Real development happens when corporations invest in people, not just profits.
R
Rohit P
₹3,200 crore is a massive investment. While the environmental benefits are clear, I hope this translates to more stable, high-quality jobs for the local youth in Ludhiana and doesn't just remain a high-tech showpiece. The proof will be in the long-term employment numbers.
S
Sarah B
As someone working in the sustainability sector, the CO₂ emission target of less than 0.3 tonnes per tonne of steel is genuinely impressive if achieved. The circular economy model, sourcing scrap from their own recycling plant, is smart business. A win for the environment and the balance sheet.
N
Nikhil C
Tata Tiscon is a trusted brand for construction. If they can produce the same quality rebar with a much lower carbon footprint, it's a game-changer for the infrastructure sector. Builders and home buyers are becoming more eco-conscious. This is timely.
K
Kavitha C
A respectful note of caution: I hope the "sourcing 40% scrap from Rohtak" doesn't lead to increased informal and unsafe scrap collection practices just to feed this new demand. The transition must be managed responsibly for the entire supply chain, especially the waste-pickers.

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