Tata Steel’s green-steel strategy is another important angle for investors following the company and India’s evolving steel industry.
The company commissioned its first scrap-based electric arc furnace at Ludhiana, Punjab, in March 2026. The facility has a planned steelmaking capacity of 750,000 tonnes a year and represents an investment of around ₹3,200 crore.
The facility uses recycled steel scrap as its primary raw material and is designed to produce steel with substantially lower carbon emissions than conventional production routes.
Why green steel matters
Steel production is energy-intensive, making emissions reduction a major industry challenge. Electric arc furnaces using scrap can reduce dependence on conventional ironmaking routes, depending on the electricity mix and operating model.
Tata Steel has stated a long-term ambition of reaching net-zero carbon emissions by 2045. The Ludhiana project is part of the company’s broader decarbonisation and circular-economy strategy.
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External sources: Tata World report on the Ludhiana furnace | Tata Steel official website
Disclaimer: The article is an informational report and not investment advice.
