₹10,000–₹15,000 Crore Annual Investment to Continue: Narendran
Jamshedpur: Tata Steel CEO and Managing Director T.V. Narendran stated on Tuesday that supply disruptions, rising logistics costs, and fuel shortages are currently impacting the steel industry and driving prices upward.
Speaking to the media at the Michael John Auditorium during the JCAPCPL Workers Union’s 10th anniversary, Narendran noted that the company is closely monitoring the rapidly evolving situation and implementing alternative measures to maintain operations.
Narendran explained that disruptions in key inputs like LPG and propane have challenged the company in recent weeks. “We receive several essential inputs from external sources, and any disruption directly affects operations,” he said. While LPG issues have improved, he warned that propane supply remains tight.
Because the company holds only two to three days of propane stock for its tinplate operations, it must track supplies daily. “If tankers arrive smoothly, operations remain stable. However, any interruption could affect short-term production,” Narendran added. He emphasized that the company is exploring alternative fuels and adjusting production priorities to minimize risks, noting that production has remained steady so far.
Regarding the financial impact, Narendran highlighted that soaring freight costs have increased operational expenses. Global factors have pushed rates up by $7–$10 per tonne and increased insurance premiums. “Rising input and logistics costs eventually reflect in product pricing. The market is already witnessing this trend,” he remarked.
Commenting on the company’s performance, Narendran described the current financial year as positive for production. He credited strong output from Jamshedpur and improved performance following the relining of a major blast furnace.
“Our Jamshedpur plant has performed well. Operations have stabilized and are running efficiently now,” he said. He also pointed to progress at other sites, including a new facility in Ludhiana and ongoing expansion at Kalinganagar. In Jamshedpur, the company is commissioning a combi mill and expanding tinplate capacity.
However, Narendran noted that space constraints limit large-scale expansion in Jamshedpur. “The plant covers about 1,800 acres and produces around 11 million tonnes. We are now focusing on downstream projects and technology upgrades rather than physical expansion,” he explained.
On capital expenditure, Narendran confirmed that Tata Steel continues to invest between ₹10,000 crore and ₹15,000 crore annually. “We will maintain this level of investment to expand capabilities, adopt new technologies, and strengthen our operations,” he said.
Addressing government support, Narendran stated that the company communicates industry concerns through platforms like the Confederation of Indian Industry (CII). While the government has helped ease LPG issues, he acknowledged that many challenges, such as global price fluctuations and logistics disruptions, remain beyond direct control.
Narendran concluded by stating that Tata Steel is continuously adapting to a dynamic environment. “We are looking at alternatives and ensuring stable production as the situation evolves,” he said.
