Tata Steel plans to significantly expand its value-added Ferro alloys share to 70-80% from 20% to curb imports for speciality steel. This strategy aligns with India's goal of self-reliance and boosting domestic high-end steel production.
Boosting Domestic Capabilities in Ferro Alloys
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 (EIC) Ferro Alloys & Minerals Division (FAMD), Tata Steel Limited told ANI on 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.
Aligning with National Steel Production Goals
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.
Innovation and Overcoming Import Dependence
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.
Developing New Speciality Products
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.
Call for Stronger Policy on Critical Minerals
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)
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