Key Highlights
- Tata Steel inaugurates India’s first scrap-based Electric Arc Furnace in Ludhiana.
- The project involves an investment of approximately ₹3,200 crore.
- The plant has an annual production capacity of 0.75 million tonnes.
- Designed to achieve CO2 emissions below 0.3 tonnes per tonne of steel.
- The facility will use 100% steel scrap and nearly 50% renewable energy.
- The initiative aligns with Tata Steel’s Net Zero target by 2045.
Tata Steel has inaugurated India’s first scrap-based Electric Arc Furnace (EAF) at its Hi-Tech Valley facility in Ludhiana, marking a significant milestone in the company’s transition towards sustainable steelmaking. The development reflects the company’s strategic focus on reducing carbon emissions and adopting circular economy practices.
The project, developed with an investment of approximately ₹3,200 crore, has an annual production capacity of 0.75 million tonnes. The plant is designed to achieve carbon dioxide emissions of less than 0.3 tonnes per tonne of steel, significantly lower than traditional steelmaking processes. This positions the facility as a key contributor to Tata Steel’s broader goal of achieving Net Zero emissions by 2045.
The inauguration ceremony was attended by Punjab Chief Minister Bhagwant Singh Mann and Tata Steel Chairman N Chandrasekaran, along with senior government officials and company executives. The company highlighted that the Ludhiana EAF facility represents a shift towards cleaner and more efficient steel production technologies in India.
According to Tata Steel, the plant has been engineered to support low-carbon steelmaking by utilising 100% steel scrap as raw material. Additionally, nearly 50% of the energy requirement for the facility will be sourced from renewable energy, further strengthening its sustainability credentials. The company also noted that around 40% of the scrap will be sourced from its recycling plant in Rohtak, Haryana.
The facility is expected to produce construction-grade steel under the company’s retail brand Tata Tiscon, enabling Tata Steel to strengthen its market presence in the construction segment. The move is also aligned with increasing demand for environmentally sustainable building materials in India’s infrastructure and real estate sectors.
Tata Steel stated that the Ludhiana project forms part of its long-term strategy to integrate circular economy principles into its operations while maintaining global competitiveness. The company emphasised that adopting scrap-based steelmaking technologies will help reduce resource intensity and improve operational efficiency.
Beyond industrial impact, the company has also undertaken community development initiatives in the Ludhiana region through the Tata Steel Foundation. Over the past three years, the company has focused on areas such as education, healthcare, agriculture, and women empowerment. Initiatives include skill development programmes for students at Industrial Training Institutes (ITIs) and efforts to create sustainable livelihoods in nearby communities.