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Tata Steel to reduce capex to 8000 cr in FY20 amid slowdown

  • 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.

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