Tata Steel said a reported €3 billion (around ₹27,000 crore) decarbonisation plan has not been finalised and the company is currently doing negotiations with the Dutch government.

What Happened: The steel giant is in discussions with the Dutch government about a proposed decarbonisation roadmap, Tata Steel said in an exchange filing. This follows a directive from the Dutch Parliament in March 2024 for the government to negotiate terms of potential support for decarbonisation at Tata Steel’s Netherlands plant.

The Dutch government has outlined a comprehensive framework for diligence, analysis, discussions and negotiations with Tata Steel. This process is expected to span several months before potentially resulting in an agreed set of terms. These terms will then need approval from the Netherlands Parliament and the board of Tata Steel.

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Tata Steel has refrained from making any further comments on the news reports appearing in the mainstream media, stating that it may be premature to draw any final conclusions at this time.

Why It Matters: This development comes in the wake of the Dutch Parliament’s approval to provide subsidies to Tata Steel for the renovation of Europe’s second-largest steel plant, which has been linked to significant health and environmental issues in the surrounding area.

The plant, located in the Netherlands, has been associated with elevated lung cancer rates and reduced life expectancy in the local population. It has faced multiple fines for emitting toxic raw cokes, a byproduct of heating coal in the absence of air essential for steel production.

While the exact amount of subsidies has not been specified, external consultants estimate it could reach €3 billion, according to a spokesperson for the Dutch Ministry of Economic Affairs and Climate.

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