MUMBAI: Tata Steel will inject $2.5 billion (Rs 21,411 crore) into its Singapore unit, T Steel Holdings, to bolster its European business operations and repay debt. Tata Steel owns the UK and Netherlands businesses through T Steel Holdings.Any overseas investment exceeding $1 billion in a financial year requires prior approval from the RBI. The board approved the investment proposal on Monday. Since T Steel Holdings is 100% owned by Tata Steel, there will be no change in the Singapore company’s shareholding after the capital infusion.This move comes after Tata Steel converted $565 million (Rs 4,822 crore) loans given to T Steel into equity in FY25.The Indian company’s UK and Netherlands units are undergoing a transformation triggered by regulatory changes that are driving decarbonisation in Europe. This involves closing legacy assets and replacing them with new production routes centred around electric arc furnaces.Future cash flows will depend on the impact of evolving regulations on carbon border adjustment (CBA is Europe and UK’s way to set a fair price on carbon emissions while producing carbon-intensive goods. It charges this price when goods are imported into its territory, providing a level playing field to local producers who face similar carbon costs), availability/pricing of clean raw materials, and assumptions around costs of and market premium for green steel, the Indian company said.