Tata Steel has launched India’s inaugural scrap-based Electric Arc Furnace (EAF) plant in Ludhiana, representing a major achievement in the nation’s shift towards eco-friendly steel manufacturing. The initiative, created with a funding of Rs. 3,200 crore (US$ 341.62 million) has an annual production capacity of 0.75 million tonnes and utilizes 100% steel scrap as its raw material. Aimed to function using almost 50% renewable energy, the plant is anticipated to greatly lower carbon emissions to under 0.3 tonnes for each tonne of steel generated, substantially below traditional blast furnace methods.
The facility will produce construction-grade steel rebar under the Tata Tiscon name, enhancing the company's footprint in the local construction sector. This progress corresponds with Tata Steel’s objective of reaching net-zero carbon emissions by 2045 and indicates a wider transition towards circular economy practices within the steel sector. The company intends to establish similar EAF-based plants in various locations in India, contingent on scrap availability, marking a strategic shift towards low-carbon steel production technologies. The initiative further bolsters India’s climate pledges while improving resource efficiency and lessening reliance on conventional raw materials, preparing the nation’s steel industry for a more sustainable and competitive future.
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