Tata Steel’s board has approved an investment of ₹33,873 crore for the first phase of expansion at Neelachal Ispat Nigam Limited, adding 4.8 MTPA of steelmaking capacity and taking the Odisha-based plant’s total capacity to 6.2 MTPA. The project has completed the engineering phase and is ready for execution.
CEO and Managing Director T.V. Narendran described the expansion as the first phase of growth at NINL, noting that it is at an advanced stage of readiness. The investment positions NINL at the heart of Tata Steel’s long products strategy, with the facility’s land bank capable of supporting up to 10 MTPA in the future.
The move follows a significant turnaround at NINL since its acquisition for ₹12,100 crore in 2022. The plant has consistently operated at its rated capacity, with FY26 recording crude steel production of 0.95 million tonnes and an EBITDA of ₹1,236 crore, a margin of 23 per cent. Key milestones include record crude steel and sinter production, lower raw material consumption and complete utilisation of process solid waste.
Tata Steel expects to complete the merger of NINL with the parent entity during FY27, simplifying governance and unlocking operational synergies. Backed by a captive iron ore mine and strategically located near Kalinganagar, NINL is expected to become a major hub for value-added long products. The company ended the latest quarter with net debt of ₹84,173 crore and a net debt to EBITDA ratio of 2.3x, below its through-cycle target range.
