Tata Steel plans capital expenditures of $1.76 billion in India and Europe for the current fiscal year

Indian steel company Tata Steel has planned capital expenditures of about $1.76 billion for the 2025-26 fiscal year for its operations in India, the United Kingdom and the Netherlands, Manufacturing Today reports.

About $1.29 billion will be spent on projects in India, including the expansion of the Kalinganagar plant and the construction of a new electric arc furnace in Ludhiana, $223 million on British operations, and the remaining amount is intended for the Netherlands division.

Tata Steel also intends to invest $2.5 billion in its Singapore-based T Steel Holdings to strengthen its European operations and manage debt repayments, The Economic Times reports. This significant capital injection will support the transformation of Tata Steel’s UK and Dutch units, which are adapting to regulatory changes and decarbonization efforts by switching to EAF.

Tata Steel owns businesses in the UK and the Netherlands through T Steel Holdings.

Any foreign investment exceeding $1 billion in a fiscal year requires prior approval from the Reserve Bank of India (RBI). Its board of directors has approved the investment proposal. Since T Steel Holdings is 100% owned by Tata Steel, the Singaporean company’s share will not change after the capital injection. This step was taken after Tata Steel converted $565 million of loans provided to T Steel Holdings into equity in fiscal year 2024/2025.

As a reminder, Tata Steel increased steel production in India by 4.3% y/y – to 21.7 million tonnes in FY2024/2025 (ended March 31, 2025). As noted, the figure is the highest in the company’s history. Consolidated steel production in the period increased by 3.3% y/y – to 30.9 million tons.