Tata Steel expects to complete the amalgamation of Neelachal Ispat Nigam Limited (NINL) with the parent company during FY27, subject to final approval from the National Company Law Tribunal (NCLT). The proposed merger is an important step in the company’s plan to expand steel production capacity at NINL through a major investment of approximately ₹40,000 crore.
The expansion is expected to add around 5 million tonnes per annum (MTPA) of steelmaking capacity at the facility in Odisha, strengthening Tata Steel’s long-products business. The project is located close to the company’s existing Kalinganagar steel plant and forms part of its broader strategy to increase domestic production, improve operating efficiencies and expand its presence in India’s growing infrastructure and construction markets.
Tata Steel Expects NINL Merger Completion in FY27
Tata Steel Executive Director and Chief Financial Officer Koushik Chatterjee said the amalgamation of NINL with Tata Steel remains on track for completion during the current financial year.
However, the transaction is still awaiting final approval from the NCLT, which is scheduled to hear the matter later in November 2026.
The merger will formally bring NINL’s operations and assets into Tata Steel’s corporate structure. It is also expected to simplify the company’s ownership structure and support the implementation of its long-term expansion programme.
Tata Steel acquired NINL’s assets in July 2022 through its erstwhile subsidiary Tata Steel Long Products (TSLP) for approximately ₹12,100 crore. The acquisition included NINL’s existing steel manufacturing facility in Odisha, which has an installed capacity of around 1 million tonnes annually.
The company has since worked to integrate the acquired business into its wider steel operations.
₹40,000 Crore Project to Add Around 5 Million Tonnes of Capacity
The proposed NINL expansion is one of Tata Steel’s major planned investments in India’s steel sector.
The company intends to invest approximately ₹40,000 crore to add around 5 MTPA of steel capacity at the NINL facility. The project will focus on long steel products, including products used in construction and infrastructure development.
The expansion is expected to include four long-product rolling mills, covering rebar and wire rod manufacturing facilities.
| Project detail | Planned development |
|---|---|
| Company | Tata Steel |
| Acquired subsidiary | Neelachal Ispat Nigam Limited |
| Acquisition cost | Approximately ₹12,100 crore |
| Existing NINL capacity | 1 MTPA |
| Additional planned capacity | Around 5 MTPA |
| Estimated investment | Approximately ₹40,000 crore |
| Project location | Odisha, near Kalinganagar |
| Merger target | FY27, subject to NCLT approval |
| Expected expansion commissioning | FY2030 target |
The additional capacity will allow Tata Steel to increase its production of long steel products. These materials are widely used in buildings, roads, bridges, industrial facilities and other infrastructure projects.
The project is expected to strengthen the company’s position in a segment that benefits from India’s infrastructure investment and construction activity.
NINL’s Location Near Kalinganagar Offers Operational Advantages
NINL’s manufacturing facility is located approximately 5–10 kilometres from Tata Steel’s Kalinganagar steel plant in Odisha.
The proximity of the two facilities could create opportunities for operational coordination, shared infrastructure and improved raw material logistics.
Tata Steel already operates a major integrated steelmaking facility at Kalinganagar, which has undergone substantial capacity expansion in recent years.
Having NINL nearby gives the company an opportunity to develop a larger manufacturing cluster in the region. Such an arrangement can help optimise logistics, improve supply-chain efficiency and support the movement of materials between manufacturing operations.
The company has also been working on increasing iron ore production and improving raw material security to support its expansion plans.
According to management commentary, the NINL expansion has entered the execution phase. Site development activities, including road construction and area grading, are underway, while procurement of key equipment is progressing.
One rebar mill is expected to begin operations ahead of the main steelmaking complex, potentially allowing an earlier production ramp-up.
Long Steel Products to Support India’s Infrastructure Demand
The planned expansion will focus on long steel products rather than primarily adding flat steel capacity.
Long products include construction steel such as reinforcement bars and wire rods. Rebars are used to strengthen concrete structures, while wire rods serve as inputs for products including wires, fasteners and industrial components.
Demand for these products is closely linked to infrastructure spending, housing construction, commercial real estate and industrial development.
India’s continued investment in highways, railways, urban infrastructure and housing has created opportunities for domestic steel manufacturers.
By expanding its long-products portfolio, Tata Steel can increase its exposure to these demand segments and strengthen its ability to serve customers across construction and industrial markets.
The additional capacity could also improve the company’s product mix and help it compete more effectively in India’s steel market.
NINL Records Strong Operating Performance
NINL has also been contributing to Tata Steel’s financial performance following the acquisition.
During the September quarter of FY27, NINL reported EBITDA of ₹318 crore, with an EBITDA margin of approximately 21%, according to Tata Steel’s second-quarter results commentary.
The performance indicates that the acquired business has become an important contributor to the company’s operations.
Tata Steel reported consolidated EBITDA of ₹10,665 crore for the quarter ended September 30, 2026, while its India business continued to provide the largest contribution to group performance.
The company’s Indian operations account for nearly three-fourths of its crude steel production, making domestic expansion a central part of its growth strategy.
The NINL project is expected to complement existing investments at Kalinganagar and other Indian manufacturing locations.
Tata Steel Continues to Expand Its Indian Manufacturing Network
The NINL expansion is part of a wider investment programme covering several parts of Tata Steel’s Indian business.
The company is progressing with downstream projects designed to increase the production of specialised and value-added steel products.
One major project is a 0.7 MTPA hot rolled pickling and galvanising line (HRPGL), which has entered the construction phase. The facility is expected to serve customers in the energy, automotive and construction industries.
Tata Steel is also doubling its tinplate manufacturing capacity to strengthen its position in the packaging segment.
Alongside these investments, the company is expanding its tubes, wires, galvanising, colour-coated steel and ready-to-use construction solutions businesses.
The strategy is intended to increase the share of higher-value products in its overall portfolio while supporting volume growth.
The Bigger Picture
Tata Steel’s planned ₹40,000 crore investment in NINL reflects the company’s focus on expanding its domestic steelmaking operations as India’s infrastructure and industrial requirements increase.
The merger is important because it would simplify the corporate structure surrounding NINL and support the next stage of investment. However, the project remains dependent on regulatory approval and the execution of a large manufacturing expansion.
The focus on long steel products also gives Tata Steel an opportunity to participate in construction and infrastructure demand. With NINL located close to Kalinganagar, the company could develop a more integrated manufacturing ecosystem in Odisha.
The expansion will require substantial capital, equipment procurement and construction work. Its eventual contribution to earnings will depend on commissioning timelines, production ramp-up, steel prices and demand conditions.
Looking Ahead
The immediate milestone for Tata Steel is securing the final NCLT approval for the NINL amalgamation. Management is targeting completion during FY27, with the merger expected to support the company’s plans for a major capacity expansion in Odisha. Construction and equipment-related activities are already progressing, while the broader project is targeted for commissioning around FY2030.
If completed as planned, the additional 5 MTPA of capacity could strengthen Tata Steel’s position in India’s long-products market and increase its ability to serve infrastructure and construction customers. The investment will also reinforce Odisha’s role in the company’s manufacturing network as Tata Steel continues to expand its domestic operations.
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