Athira Sethu
Kochi, 4 August 2025
JSW Steel and Japan-based JFE Steel will invest ₹5,845 crore, or around 669 million US dollars, to boost the output of a special steel called cold rolled grain-oriented (CRGO) electrical steel. This type of steel is significant as it contributes to making transformers and other power equipment operate more efficiently. It is predominantly used in the power sector and enables the saving of energy by minimizing electricity loss. While India’s demand for power that is clean and efficient power increases, demand for this type of steel is likewise increasing.
To achieve this, the two firms are increasing output at two of their steel facilities in India. One is located in Nashik, and the other one is found in Vijayanagar. At the Nashik facility, they will raise the production of steel annually from 50,000 tonnes to 250,000 tonnes. This phase of the project will amount to ₹4,300 crore. They will increase the capacity at the Vijayanagar plant from 62,000 tonnes to 100,000 tonnes annually. This phase will cost ₹1,545 crore.
Both firms will invest ₹1,966 crore as equity, i.e., equally share the expense. They haven’t announced yet how they will arrange the remaining funds for the project. The new capacity in steel-making will be added in phases beginning in fiscal year 2028.
The Nashik plant, which is now a significant part of this plan, was acquired earlier this year by JSW and JFE. It was acquired from a German firm named Thyssenkrupp for ₹4,159 crore. The plant is now at the forefront of their plans to produce more CRGO steel in India rather than importing it from other nations.
Producing this kind of steel in India is significant since it can help reduce the nation’s dependence on importing it from overseas. CRGO steel also aids in cleaner energy targets since it eliminates power wastage and assists in reducing carbon emissions.
In another development, JSW also received some respite from the Supreme Court. The court has revoked an earlier ruling that had halted JSW’s acquisition of Bhushan Power and Steel. A new hearing will take place on August 7.
JSW Energy, its group partner, on the other hand, has inked a 25-year contract to supply 230 megawatts of clean energy to the Solar Energy Corporation of India. This will bring JSW nearer to its target of 30 gigawatts of installed power capacity by 2030.
