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Tata Steel commissions Rs 3,200-cr project in Punjab, adds EAF route to produce steel

Tata Steel green steel plant in Punjab marks Rs 3,200 crore investment, introducing scrap-based EAF technology for low-carbon steel production.

The plant uses scrap-based EAF technology for sustainable steel production.Tata Steel has commissioned a green steel plant in Punjab with an investment of Rs 3,200 crore. (Representative Photo)

Punjab Chief Minister Bhagwant Mann on Friday inaugurated Tata Steel’s scrap-based electric arc furnace (EAF) built with an investment of nearly Rs 3,200 crore.

“This is a momentous day as history has been created to give a major fillip to the economic development of the state. Today, Punjab has become the first state in India to start steel production using green energy through this electric arc furnacebased plant. It is a red-letter day for Punjab as Tata Steel has taken responsibility to illuminate the future of 2,600 to 2,700 families directly, and 8,000-10,000 indirectly. This world-class plant is equipped with cutting-edge green energy technology,” Mann said.

The 0.75 million tonne per annum (mtpa) scrap-based facility is designed to achieve CO2 emissions less than 0.3 tonnes per tonne of steel, Tata Steel said in a statement. It said, Friday marked a historic milestone in the company’s journey toward sustainable steelmaking with the introduction of its scrap-based EAF facility at Hi-Tech Valley, Ludhiana.

“As India accelerates its transition towards a climate-resilient future, sustainability has become a national imperative – one that demands urgent, collective action. The EAF reflects Tata Group’s long-term commitment to building a greener, more resilient industrial future,” Tata Steel chairman N Chandrasekaran said.

TV Narendran, CEO and managing director of Tata Steel, and other senior government officials and company representatives were present at the event.

“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 the circular economy by backing technologies that reduce resource intensity, while remaining globally competitive,” Narendran said, thanking the Punjab government for its support.

Designed to support low-carbon steelmaking, the plant will use nearly 50 per cent renewable energy.

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The 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.

Speaking on the occasion, Mann drew a sharp contrast with previous governments, asserting that industries that once left Punjab due to “flawed policies” are now returning under a “pro-industry regime”.

Congratulating the Tata Steel team, he said, “When a company like Tata Steel invests in a state, it reflects trust, confidence and belief in its future. Tata Steel’s presence sends a clear message that Punjab is ready for the next phase of industrial growth. This investment is not just a project, but an opportunity for the youth of Punjab, our engineers, our skilled workforce and for Punjab’s manufacturing sector to grow stronger”.

Emphasising the future vision, the chief minister said, “Punjab has always been a land of entrepreneurs and cities like Ludhiana are globally recognised for their entrepreneurial spirit, hard work and manufacturing strength. With modern facilities like this Tata Steel plant, we are strengthening our legacy and preparing Punjab for the future of manufacturing”.

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Reiterating the government’s industrial vision, he asserted, “We want Punjab to become one of the most preferred industrial destinations in India. We want companies to see Punjab not just as a market, but as a long-term manufacturing partner.

“Tata Group is globally known for its social responsibility, and Ratan Tata had always led from the front in this regard.” Recalling a personal example, he shared that Ratan Tata had even started a dog shelter at Bombay House for stray dogs after seeing them struggle during the monsoon.

Describing him as the ‘Desh ka Beta’, Mann said that when he passed away, the entire nation mourned.

Punjab is proud to be the first state to start steel production using green energy, he added.

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“Punjab is ready, it welcomes investment and supports industry that creates jobs and strengthens the economy. Every new factory and investment helps the state move closer to generating employment. When industries grow, Punjab grows, and when Punjab grows, the country grows.,” he added.

Punjab’s Industries Minister Sanjeev Arora was also present on the occasion.

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