Tata Steel CEO T.V. Narendran confirmed that the Electric Arc Furnace (EAF) project at Port Talbot is experiencing delays, primarily due to issues in securing timely electricity/grid connection.
Tata Steel is seeking active discussions with the UK government to share concerns and address cost escalations and timeline shifts stemming from the grid delays.
While declining to directly confirm if fresh government funds have been officially requested at this early stage, Narendran noted that ongoing dialogues are necessary as the company navigates broader international market challenges.
Tata Steel Wants Discussion With UK Govt Over Delayed EAF Project: Narendran
Tata Steel CEO TV Narendran emphasizes the need for urgent clarity from the UK government regarding the delayed Electric Arc Furnace (EAF) project
Summary
Tata Steel is looking to have a discussion with the UK government to discuss issues being faced in timely implementation of the electric arc furnace (EAF) project at Port Talbot, the company's CEO T V Narendran said.
The company official noted that there is no delay from Tata Steel in construction of 3.2 million tonne project being set up at an investment of 1.25 billion pounds.
"We are in conversation with the UK government to say let's have a discussion on what can be done," Narendran told PTI on the sidelines of the 53rd National Management Convention organised by All India Management Association (AIMA).
He made the remarks while replying to a question on the future course of action for the UK project, which is facing delays in securing power supply.
In August, Narendran had said Tata Steel UK is expecting to secure access to electricity for its 3.2 million tonne electric arc furnace by 2029.
In May 2024, Tata Steel signed a connection offer with the Electricity System Operator (ESO). The agreement involves National Grid building new electrical infrastructure capable of powering the 3.2 million tonne electric arc furnace by the end of 2027.
The project -- being built at 500 million pounds of government support -- aims to reduce site-level CO2 emissions by 90 per cent -- equivalent to 5 million tonnes annually.
On whether Tata Steel has sought fresh funds from the UK government, Narendran, without denying, said "it is too early to say where we are but there is a conversation to share with them regarding concerns." On the outlook for the sector, he said while international markets are still struggling, India is witnessing a rising demand.
Demand is strong and steel prices have started moving up over last 6-8 weeks which is good because coking coal prices have gone up 50-60 USD per tonne.
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