Tata Steel capex likely to touch 9,000cr in FY20

Kolkata, Feb 16 () Tata Steel Ltd is expecting itscapex during the current fiscal to touch the Rs 9,000-croremark, company sources said.

The steel major, however, will take a cautiousapproach at the capital allocation for the next financialyear, they said.

The steel maker had, earlier, said that it wouldrevise the planned capital expenditure for the 2019-20 to Rs8,000 crore from Rs 12,000 crore for the group.

In the third quarter, company had spent about Rs 2,777crore, taking the total capital expenditure to Rs 7,762 croreduring the first nine months of the current fiscal, sourcessaid.

The company had invested around Rs 1,367 crore for itsIndia operation, including about Rs 935 crore expenditure forits Kalinganagar plant in Odisha, they said.

"A part of the capex is committed to Tata SteelEurope. Thus, the actual spending will be higher. By theyear-end, the capex will be around Rs 9,000 crore.

"But (we are) looking at the capital allocation verysharply for the next year and it would depend on how themarkets play out over the next few months," sources said.

They said the company has prioritised the pellet plantand the cold-rolling mill.

"The pellet plant will help us to bring down costswhile the cold-rolling mill to add value to the productmix...We maintain our target to commission the same in about ayear from now," the company had informed the analysts.

For other projects, the steel maker will phase it outdepending on the market conditions, soures added. BSMBDC BDC