Tata Steel will invest Rs 100 billion (Rs 100 bn) in Jharkhand by 2028 and create 2,000 jobs, the company announced, with funds directed to expand local capacity and support supply chains. A one million tonnes pilot plant is planned within the existing Jamshedpur ecosystem to leverage available infrastructure, and the hot metal produced will be used in the Jamshedpur steel melt shops. The engineering study for this project has commenced and is intended to inform a phased implementation that minimises disruption to ongoing operations.

The company said the technology has operated successfully at its Netherlands site for the last 10 years, producing 60,000 tonnes per annum, which provides operational data that validates scalability. The pilot will build on that experience and is intended to integrate with local melt shop operations to optimise material flows and reduce feedstock handling. The phased approach aims to allow the company to evaluate performance, logistics and cost outcomes before any larger roll-out.

HIsarna offers flexibility to use coking coals readily available in India, which will reduce dependence on imported coking coal and lower raw material costs. The route requires significantly lower capital expenditure compared with conventional steel plant construction because several upstream facilities can be avoided, which can shorten project timelines and reduce financing needs. From a sustainability standpoint, HIsarna emits 20 per cent less carbon dioxide than the traditional blast furnace route, supporting the company’s decarbonisation objectives.

Tata Steel has a consolidated steelmaking capacity of over 36 mn t per annum, excluding the United Kingdom’s 3.2 mn t under transition; its footprint comprises 27.35 mn t in India, 7 mn t in the Netherlands and 1.7 mn t in Thailand. The company aims to increase capacity to over 50 mn t in the long term, with the increase expected mainly in India where plans are under way to add over 12 mn t. In India the company owns and operates 11 mn t at Jamshedpur, 1 mn t at Gamharia, 9 mn t at Kalinganagar which includes Neelanchal Ispat Nigam Ltd acquired through insolvency, and a 5.6 mn t plant at Meramandali.