Tata Steel to start Indias first scrap processing plant
Tata Steel informed the bourses on Tuesday that it has flagged-off the first raw material consignment of ferrous scrap on July 24 for trials at its steel recycling plant that is being set up in Rohtak (Haryana). The said plant has 0.5 MnTPA scrap processing capacity, which is expected to commence soon.
The company said that it would procure scrap from various market segments such as the end of life vehicle scrap, obsolete household scrap, construction and demolition scrap, industrial scrap, etc. This scrap would be processed through mechanised equipment and the high quality processed scrap would be supplied to electric arc furnaces (EAFs), induction furnaces (IFs), and foundries for downstream steel making, satiating their long-standing demand.
This move would help the company to reduce its reliance on imports as most of the demand for ferrous scrap is met through import.
The domestic production volume of Tata Steel during Q1FY21 was at 2.99 MT. Utilisation level of upstream facilities was scaled up from 50 per cent in April to 80 per cent level in June 2020.
The government’s National Steel Policy, which has set a target of 300 MTPA steel production in India by FY30, as well as steel recycling will play a pivotal role in attaining this ambition.
The stock of Tata Steel in Tuesday’s trading session settled in a positive terrain at Rs 358.35, up by nearly 1.6 per cent from its previous close.