JSW Steel to invest ₹50,000–₹60,000 Crore in green steel plant at Salav, Maharashtra

By Staff Report April 16, 2025 6:25 pm IST

JSW Steel Ltd. plans to set up a 10 million tonnes per annum (MTPA) green steel plant in Salav, Maharashtra, with an investment ranging between ₹50,000 crore and ₹60,000 crore. The announcement was made by Sajjan Jindal, Chairman of the JSW Group, during the centennial celebrations of the Indian Chamber of Commerce (ICCO).

Important Aspects of the Investment

Investment Size and Timeline:

• The green steel plant will require a capital expenditure of ₹50,000–₹60,000 crore.
• The investment will be made over a period of three to four years.

Location and Production Capacity:

• The facility will be located in Salav, Maharashtra.
• It will have a production capacity of 10 million tonnes per annum (MTPA).

Focus on European Exports:

• The plant will primarily cater to European Union markets, in response to the upcoming Carbon Border Adjustment Mechanism (CBAM), which will impose carbon tariffs on imported goods starting in 2026.
• This initiative aims to significantly reduce carbon emissions and aligns with international climate commitments.

Green Steel and Technology Shift

The new green steel plant in Salav will initially operate using natural gas, with a planned transition to hydrogen-based production as the technology becomes more accessible. This shift is expected to substantially reduce carbon emissions. According to Chairman Sajjan Jindal, green steel production at the plant could cut emissions by approximately 20%. This initiative is a major step in JSW Steel’s broader sustainability goals. The existing Salav unit, which has a production capacity of 0.9 MTPA, was recently transferred to JSW Green Steel, a wholly-owned subsidiary, through a slump sale. JSW Green Steel was established in February 2023 to lead the company’s green initiatives and focus on environmentally friendly production methods.