JSW, Japan's JFE to invest ₹5,845 cr in India to scale up steel production

JSW and Japan's JFE Steel to jointly invest ₹5,845 crore to boost cold rolled grain-oriented steel output in Nashik and Vijayanagar amid rising demand for energy-efficient materials

JSW Steel and Japan’s JFE Steel plan to invest ₹5,845 crore (around $669 million) to scale up production of cold rolled grain-oriented (CRGO) electrical steel at two of their Indian plants, news agency Reuters reported. This move is aimed at meeting rising domestic demand for energy-efficient steel used mainly in transformers and other power applications.

 

Plant-wise expansion plans

 

•Nashik plant:

JSW-JFE Steel will raise production at its Nashik facility from 50,000 tonnes per annum (TPA) to 250,000 TPA. This will involve an investment of ₹4,300 crore.

 

•Vijayanagar plant:

Another ₹1,545 crore will be spent to boost capacity at the upcoming Vijayanagar facility from 62,000 TPA to 100,000 TPA.

 

•Funding structure:

JSW and JFE will equally contribute ₹1,966 crore in equity. The company has not disclosed how the remaining funds will be sourced. 

 

Why it matters: Green steel for cleaner energy

 

CRGO electrical steel is known for its high energy efficiency, which reduces transmission losses and carbon emissions. The increased domestic capacity could reduce India’s reliance on imports for this critical material used in the power sector.

 

The new capacity will be added in phases, starting from FY28.

 

Nashik unit bought from Thyssenkrupp

 

Earlier this year, JSW JFE had acquired the Nashik plant from Germany’s Thyssenkrupp in a ₹4,159 crore deal. The plant forms the backbone of the joint venture’s expansion strategy.

 

SC withdraws Bhushan Power liquidation order

 

In a major relief to JSW Steel, the Supreme Court last week withdrew its May 2 ruling that had declared JSW’s resolution plan for Bhushan Power and Steel Ltd (BPSL) “illegal” and ordered liquidation.

 

A Bench headed by Chief Justice BR Gavai has now agreed to review the ruling and will hear arguments on August 7.

 

The court noted: “Prima facie, we are of the view that the impugned judgment does not correctly consider the legal position…”   

 

Renewable push: JSW Energy inks 230 MW power deal

 

JSW Energy’s subsidiary, JSW Neo Energy, has signed a 25-year Power Purchase Agreement (PPA) with the Solar Energy Corporation of India (SECI), news agency PTI reported.

 

•The agreement is for 230 MW of firm and dispatchable renewable energy (FDRE) under SECI’s Tranche IV scheme.

•The tariff has been fixed at ₹4.98 per kWh.

 

This is the company's first FDRE PPA, and strengthens its total locked-in capacity to 30.2 GW, including 12.9 GW under construction. JSW aims to reach 30 GW installed capacity and 40 GWh energy storage by 2030.