JSW Steel is set to invest ₹50,000-60,000 crore over the next three to four years to expand its capacity at the Salav Works unit in Maharashtra, announced chairman Sajjan Jindal at an industry event. The company plans to scale up the plant’s production capacity to 10 million tonnes (mt) during this period.

The Salav unit, which currently has a direct reduced iron capacity of 0.9 mt, was transferred to JSW Green Steel—JSW Steel’s wholly-owned subsidiary—last month on a slump sale basis. The investment aligns with the company’s broader ambitions of transitioning to green steel production and catering to export markets, particularly Europe, where the Carbon Border Adjustment Mechanism (CBAM) will be enforced from 2026.

CBAM is a regulatory tariff designed to equalise carbon costs for imported products with those produced domestically within Europe, thus incentivising lower carbon emissions globally. JSW’s Salav facility will initially operate on natural gas but will be capable of switching to hydrogen to meet future zero-carbon steel requirements. “This plant will be based on natural gas to start with, but it will have the ability to switch to hydrogen, as and when zero carbon steel is needed,” Jindal said.

JSW Green Steel, incorporated in February 2023, is leading the green transition within the group. The plant’s capacity was earlier pegged at 4 mt by joint managing director Jayant Acharya. JSW Steel, already India’s largest steelmaker with over 30 mt of installed capacity, has set an ambitious long-term vision of reaching over 100 mt, although no definitive timeline has been announced. “Setting a 100 million target is huge, but you set yourself a stiff target and work towards it,” Jindal remarked.

India’s steel industry is witnessing a phase of aggressive expansion, with players like Tata Steel, Jindal Steel and Power, AM/NS India, and the state-run Steel Authority of India all enhancing their production capacities to meet domestic and international demand.

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