Tata Steel inaugurates first scrap-based Electric Arc Furnace with Rs. 3,200 crore (US$ 341.62 million) investment
- IBEF
- March 23, 2026
Tata Steel has inaugurated India’s first scrap-based Electric Arc Furnace (EAF) facility in Ludhiana, marking a significant milestone in the country’s transition towards sustainable steel production. The project, developed with an investment of Rs. 3,200 crore (US$ 341.62 million), has a production capacity of 0.75 million tonnes per annum and uses 100% steel scrap as raw material. Designed to operate with nearly 50% renewable energy, the facility is expected to significantly reduce carbon emissions to less than 0.3 tonnes per tonne of steel produced, much lower than conventional blast furnace routes.
The plant will manufacture construction-grade steel rebar under the Tata Tiscon brand, strengthening the company’s presence in the domestic construction segment. This development aligns with Tata Steel’s long-term goal of achieving net-zero carbon emissions by 2045 and reflects a broader shift towards circular economy practices in the steel industry. The company plans to replicate similar EAF-based facilities across multiple locations in India, depending on scrap availability, signalling a strategic pivot towards low-carbon steelmaking technologies. The initiative also supports India’s climate commitments while enhancing resource efficiency and reducing dependence on traditional raw materials, positioning the country’s steel sector for a greener and more competitive future.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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