Tata Steel Spent Less Than Half of Planned Capex for FY23

SEATTLE (Scrap Monster): Leading Indian steelmaker Tata Steel announced that it has spent only less than 50% of the planned capex in the fiscal year 2022-’23. This was announced by T.V. Narendran, CEO of the company, in response to a question related to its capital expenditure plans for the ongoing fiscal.

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The company had announced INR 12,000 crore worth capital expenditure plans for the year, out of which nearly INR 8,500 crore was for India and the balance INR 3,500 crore for Europe operations. The company had won the bidding process in July 2022 towards acquisition of assets of Odisha-based steel maker Neelachal Ispat Nigam Limited (NINL) for INR 12,000 crore. Also, the company is awaiting financial support from the UK government to implement decarbonisation techniques at its plants.

Commenting on its future course of action, the UK business outcome will be based on the UK government’s response to its proposal seeking financial support. Meantime, the consolidation process at Tata Steel will continue, he said. It must be noted that the Board of Directors of the company had recently approved the amalgamation of its seven subsidiary companies into one business unit.

Tata Steel had reported dramatic dip in consolidated net profit to INR 1,297 crore during the September quarter.