Tata Steel commissions Rs 3,200 Crore scrap-based furnace in Ludhiana

Jamshedpur: In a significant stride towards sustainable manufacturing, Tata Steel has commissioned the country’s first scrap-based Electric Arc Furnace (EAF) facility at Hi-Tech Valley in Ludhiana on Friday. 

Developed with an investment of approximately  Rs 3,200 crore, the plant has an annual production capacity of 0.75 million tonnes and is engineered to keep carbon emissions below 0.3 tonnes per tonne of steel produced.

The inauguration ceremony was attended by Bhagwant Singh Mann, alongside Natarajan Chandrasekaran and T. V. Narendran, among other dignitaries.

Highlighting the broader significance of the project, Chandrasekaran noted that India’s push towards climate resilience demands decisive industrial transformation, and initiatives like the Ludhiana EAF underscore the Tata Group’s commitment to a cleaner and more sustainable future.Narendran described the facility as a pivotal advancement in Tata Steel’s long-term strategy to achieve net-zero emissions by 2045. 

He emphasized that the project reflects a shift in capital allocation towards circular economy models, prioritizing resource efficiency without compromising competitiveness.

The plant is designed to run on nearly 50 % renewable energy and will rely entirely on steel scrap as its primary raw material. 

Around 40% of this scrap will be sourced from the company’s recycling unit in Rohtak, Haryana.  The facility will manufacture construction-grade rebars under the widely recognized Tata Tiscon brand, further strengthening the company’s presence in the infrastructure segment.

In parallel with its industrial expansion, Tata Steel has also invested in community development in the Ludhiana region through its foundation. 

Over the past three years, initiatives have focused on skill development for ITI students, women’s livelihood generation, solar-powered infrastructure, sustainable agriculture practices, waste management systems, and educational support for deserving students.

The commissioning of this facility marks a transformative moment for India’s steel sector, positioning Tata Steel at the forefront of low-carbon steel production while advancing the country’s sustainability agenda.