Tata Steel has commissioned India’s largest blast furnace in Kalinganagar, Odisha expanding the domestic steel making capacity by another 5 million tonne.

With the completion of the second phase of the Kalinganagar expansion, which entailed an investment of ₹27,000 crore, Tata Steel’s India capacity now stands at 26.6 MT, closing the gap with JSW Steel.

The project, which took time in implementation as Tata Steel had pivoted towards aggressive debt reduction during the pandemic, was approved by the board of the company on December 20, 2017.

The new blast furnace with a volume of 5870 square metre, was inaugurated by T. V. Narendran, CEO and managing director, Tata Steel, in the presence of senior leaders of the company, is going to boost the plant's overall production capabilities, allowing Tata Steel to meet the growing demands of various industries, including automotive, infrastructure, power, shipbuilding, and defence. It will also provide advantages in specific areas like oil and gas, lifting and excavation, and construction, the company said in a statement.

With this phase now up and running, Odisha now carved out the largest pie of Tata Steel’s capacity anywhere in the world. Following the acquisition of Neelachal Ispat Nigam Ltd (NINL) and erstwhile Bhushan Steel, TSL now have 14.6 MT capacity in Odisha, compared to 12 MT in neighbouring Jharkhand, where the company’s journey started by Tata Group founder Jamsetji Tata more than a century ago.

The company on Friday informed that With the phase II expansion, Odisha has emerged as the largest investment destination in India for Tata Steel, with a total cumulative investment of over ₹100,000 crore in the last 10 years.

The indications are that future expansion are being planned in Odisha only with the third phase in Kalinganagar and NINL plant, apart from Meramandali plant of Bhushan Steel.

Commenting on the development, Narendran said in a statement, “A key enabler of socio-economic development in the region, the expansion not only strengthens Tata Steel's position as a leader in high-end, value-added steel segments but also showcases our advanced engineering prowess. It underscores our commitment to boosting private investment in India, aligning with the nation's vision for self-reliance and sustainable industrial growth.”

Key facilities in phase II expansion at Kalinganagar also include a pellet plant, coke plant, and cold rolling mill, each incorporating advanced technologies and sustainable practices, Tata Steel said in a statement, adding that the new steel plant incorporates modern technologies focused on value-added products, operational efficiency, and a significant reduction in carbon footprint.

While Tata completes the project, JSW Steel is also in the process of commissioning 6 MT additional capacity taking India capacity to 34.2 MT.