Tata Steel Adds 5 Million Tonnes Capacity at Kalinganagar Plant

Tata Steel has completed the 2nd phase of expansion at its Kalinganagar facility in Odisha, increasing the plant’s crude steel capacity from 3 million tonnes per annum (MTPA) to 8 MTPA. The project, which began in November 2018, involved an investment of ₹27,000 crore.

The new infrastructure includes India’s largest blast furnace with a volume of 5,870 cubic metres. The site is also equipped with facilities such as a pellet plant, coke plant, and cold rolling mill.

Inauguration in Jajpur District

The plant is located in the Jajpur district of Odisha. On May 22, 2025, Chief Minister Mohan Charan Majhi inaugurated the expanded facility. Also present were senior state officials, Tata Steel’s CEO & MD T. V. Narendran, and members of the local community.

Industrial Use

With this expansion, Tata Steel aims to supply advanced high-strength steels to several sectors, including automotive, infrastructure, power, shipbuilding, engineering, and defence. The Kalinganagar site now plays a larger role in the company’s domestic operations.

Read more: Tata Steel Targets ₹11,500 Crore in Cost Reductions Amid Global Transformation

Odisha: Investment Destination

The state of Odisha has become a major part of Tata Steel’s India operations. The company has invested over ₹1,00,000 crore in the state over the last decade. In addition to Kalinganagar, other key facilities in the region include Meramandali (5.6 MTPA), Neelachal Ispat Nigam Ltd. (1 MTPA), and Gamharia (1 MTPA).

Financial Performance

Tata Steel posted a consolidated net profit of ₹1,201 crore for the quarter ending March 2025. This was more than double the ₹555 crore recorded in the same period last year. As of now, Tata Steel’s total domestic crude steel capacity stands at 26.1 MTPA.

As of 11:30 AM on May 23, 2025, Tata Steel share price was trading at ₹162.52, a 0.76% increase, with a 12.41% increase over the past 6 months and a 7.98% drop over the past year.

Conclusion

The expanded capacity at Kalinganagar strengthens Tata Steel’s operations in Odisha and supports its existing supply commitments across core industries.

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