Indian steel major Tata Steel is adopting differing approaches to decarbonisation in Europe and India, reflecting local market realities, the company’s chief executive officer and managing director T.V. Narendran has told Kallanish’s Green Steel Challenge podcast.
In Europe, high carbon costs and stricter regulations are pushing the company towards electric arc furnace (EAF) steelmaking and greater use of scrap. At Port Talbot, Tata Steel is utilising this model, backed by a €500 million ($630m) government grant. Narendran says Europe faces a “survival and transition” challenge, with limited availability of affordable green hydrogen and renewable energy.
In India, steel demand remains strong and capacity additions are ongoing. Tata Steel is therefore focusing on gradual emissions reduction rather than wholesale asset replacement. The company is investing in gas-based direct reduced iron (DRI), hydrogen injection trials in blast furnaces, and the development of a professional scrap supply chain through its Tata FerroBaling programme. Tata FerroBaling part of the steelmakers recycling business, designed to formalise India’s largely unorganised scrap market and improve supply quality and transparency.
Narendran says the global steel transition is multi-speed, adding, “while the goal is global, the journey is regional.” He notes that “Europe has a clear case for rapid transition due to high carbon taxes and public demand for cleaner production, while India’s focus is on greening the growth as capacity continues to expand.”
He further adds: “No steel company in the world can realise the transition… without government support.” He points out that Europe is ahead because governments are footing 40%–60% of the capital costs.
Since India is adding 100–150 million tonnes of capacity every decade, he insists the priority is keeping that growth sustainable rather than just replacing old assets, which is the European focus.
The two-pronged strategy highlights how policy frameworks, geography and raw material availability are shaping the economics of green steel.
India is likely to remain a key production hub in the near term, while Europe continues to lead in low-carbon branding and circular steelmaking.
Tata’s split approach allows it to remain competitive in price-sensitive Indian markets while complying with tighter European decarbonisation rules, potentially widening the gap between domestic and export-oriented mills.
