Tata Steel Launches India’s First Scrap-Based Electric Arc Furnace in Ludhiana
Mumbai, March 20, 2026: Tata Steel Limited has marked a major milestone in sustainable manufacturing with the inauguration of its first scrap-based Electric Arc Furnace (EAF) facility in Ludhiana, Punjab.
The state-of-the-art plant, located at Hi-Tech Valley in Ludhiana, has been developed with an investment of approximately ₹3,200 crore and has a production capacity of 0.75 million tonnes per annum (MTPA).
A Major Step Toward Low-Carbon Steelmaking
The new facility is designed to significantly reduce carbon emissions, achieving less than 0.3 tonnes of CO₂ per tonne of steel produced. This positions the project as a key contributor to Tata Steel’s ambitious Net Zero emissions target by 2045.
Unlike traditional blast furnace routes, the EAF plant will use 100% steel scrap as raw material, supporting circular economy principles. Around 40% of the scrap will be sourced from Tata Steel’s recycling plant in Rohtak.
Powered by Renewable Energy and Circular Economy Principles
The Ludhiana EAF facility will operate using nearly 50% renewable energy, reinforcing Tata Steel’s focus on sustainability and resource efficiency. By recycling steel scrap, the plant reduces dependence on virgin raw materials and minimizes environmental impact.
The facility will manufacture construction-grade steel rebar under the flagship brand Tata Tiscon, strengthening the company’s presence in India’s growing construction sector.
Leadership and Government Support
The inauguration ceremony was attended by Bhagwant Singh Mann and Natarajan Chandrasekaran, along with T. V. Narendran and other senior officials.
Speaking at the event, leadership emphasized that the project reflects a long-term commitment to building a climate-resilient industrial future while maintaining global competitiveness.
Community Development and Social Impact
Over the past three years, Tata Steel, through its foundation, has worked closely with local communities in Ludhiana. Key initiatives include:
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Skill development programs for ITI students
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Women livelihood initiatives
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Solar-powered street lighting
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Climate-resilient agriculture practices
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Waste management systems
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Scholarships for meritorious students
These efforts highlight the company’s integrated approach to industrial growth and social responsibility.
Strengthening India’s Green Industrial Transition
The launch of the Ludhiana Electric Arc Furnace marks a transformative shift in India’s steel sector toward low-carbon, resource-efficient production. As India pushes for sustainable industrialization, Tata Steel’s initiative sets a benchmark for future-ready steelmaking.
Conclusion
With the commissioning of its first scrap-based EAF in Ludhiana, Tata Steel has taken a decisive step toward decarbonizing steel production in India. The project combines innovation, sustainability, and community impact—reinforcing the company’s leadership in shaping a greener industrial future.