Tata Steel to reduce capex to ₹8000 cr in FY20 amid slowdown1 min read . Updated: 10 Aug 2019, 07:38 PM IST
- The company has revised the planned capital expenditure for 2019-20 to ₹8,000 crore from ₹12,000 crore
- The steel sector is expected to see a pick-up in the second half of the year
Kolkata: Facing headwinds amid a slowdown in the economy, Tata Steel Ltd on Saturday said it is likely to revise the planned capital expenditure for 2019-20 to ₹8,000 crore from ₹12,000 crore.
The steel sector is expected to see a pick-up in the second half of the year, a top company official said.
"We have given a guidance that the capex will be 20-25% lower than the original plan between Europe and India (operations)... our original estimate was ₹12,000 crore for the Tata Steel Group... it will now be around ₹8,000 crore," Tata Steel CEO and MD T V Narendran said.
Of the ₹12,000 crore, the steel major had initially planned to spend around ₹8,000 crore on India operations.
"Both sides (India and Europe) will take a cut," Narendran told reporters here after the launch of the company's steel retail store, steeljunction.
He said the capex for India will largely be deployed for its Kalinganagar plant in Odisha.