Tata Steel to cut capex to Rs 8,000cr in FY20 amid slowdown
Facing headwinds amid a slowdown in the economy, Tata Steel Ltd on Saturday said it is likely to revise the planned capital expenditure for the 2019-20 fiscal to Rs 8,000 crore from Rs 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 per cent lower than the original plan between Europe and India (operations)... our original estimate was Rs 12,000 crore for the Tata Steel Group... it will now be around Rs 8,000 crore," Tata Steel CEO and MD T V Narendran said.
Of the Rs 12,000 crore, the steel major had initially planned to spend around Rs 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 on its Kalinganagar plant in Odisha.