JSW Steel and Japan’s JFE to Invest ₹5,845 Crore to Expand CRGO Electrical Steel Capacity in India
- mukesh muke
- Aug 6
- 3 min read
JSW Steel Ltd and Japan’s JFE Steel Corporation have announced a joint investment of ₹5,845 crore (approximately $669 million) to expand the production capacity of cold rolled grain-oriented (CRGO) electrical steel in India. The investment aims to meet the rapidly growing domestic demand for energy-efficient electrical steel used in transformers, power generation equipment, and other high-efficiency electrical applications.
This strategic expansion reinforces JSW-JFE’s commitment to import substitution, localization of advanced materials, and strengthening India’s position in the global value chain for energy-efficient infrastructure.
Expansion Overview: Nashik and Vijayanagar Facilities
The capacity expansion will be executed at two critical JSW-JFE Electrical Steel facilities:
Nashik Plant – Maharashtra
Existing capacity: 50,000 tonnes per annum (TPA)
Post-expansion capacity: 250,000 TPA
Investment: ₹4,300 crore
Background: This plant was acquired from Germany’s Thyssenkrupp in January 2025 for ₹4,159 crore. It is one of India’s first CRGO manufacturing units.
Vijayanagar Plant – Karnataka
Original planned capacity: 62,000 TPA
Revised capacity: 100,000 TPA
Additional investment: ₹1,545 crore
After the completion of both phases, the total CRGO capacity will reach 350,000 TPA by FY2028.
Financial Structure and Timeline
Total investment: ₹5,845 crore
Equity contribution: ₹1,966 crore, jointly funded by JSW Steel and JFE Steel on a 50:50 basis
Balance funding: Yet to be disclosed
Commissioning timeline: Capacity to be added in phases and fully operational by FY2028
With this investment, the total capital deployed by the joint venture across the Nashik and Vijayanagar plants will amount to ₹15,560 crore, including prior investments and acquisitions.
Strategic Significance of CRGO Electrical Steel
Cold Rolled Grain-Oriented (CRGO) electrical steel is a high-grade material used in manufacturing energy-efficient transformers, large generators, and emerging technologies such as e-mobility systems and data centers. Key features of CRGO steel:
High magnetic permeability and low core loss
Significant reduction in energy transmission losses
Essential for grid stability and power efficiency
Supports India’s decarbonization and renewable energy goals
This investment aligns with the government’s PLI (Production Linked Incentive) Scheme for specialty steel and the broader vision of building a self-reliant, low-carbon industrial base.
Industry Impact and Import Substitution
India currently imports a significant portion of its CRGO steel from Japan, China, South Korea, and European countries. By expanding local capacity to 3.5 lakh TPA, JSW-JFE Electrical Steel aims to:
Substitute costly imports with domestically produced CRGO
Create a robust supply chain for the power sector
Provide value-added steel solutions for domestic transformer and electrical equipment manufacturers
Enable technological independence in a highly specialized material segment
Upon full commissioning, JSW Steel will become the first company in India to offer an integrated CRGO manufacturing ecosystem, supporting applications across power transmission, renewables, and advanced electronics.
Statement from JSW Steel Leadership
Jayant Acharya, Joint Managing Director and CEO of JSW Steel, noted:
“This investment is a strategic step toward enabling import substitution and supporting India’s green energy transformation. By expanding our CRGO capacity, we are not only meeting growing domestic demand but also positioning ourselves as a competitive player in the global electrical steel market. This aligns with our vision to build future-ready steel capabilities and contribute meaningfully to national energy transition goals.”
Key Data Summary
Particulars | Details |
Total Planned Investment | ₹5,845 crore (USD 669 million) |
Combined CRGO Capacity After Expansion | 350,000 TPA |
Nashik Plant Expansion | From 50,000 to 250,000 TPA (₹4,300 crore) |
Vijayanagar Plant Expansion | |
Equity Contribution | ₹1,966 crore (JSW and JFE – 50:50) |
Target Commissioning | By FY2028 |
Total CRGO-related Investment to Date | ₹15,560 crore |
Conclusion
The JSW-JFE joint venture marks a turning point for India’s electrical steel ecosystem. With robust financial backing, cutting-edge technology, and a forward-looking strategy, this expansion will play a critical role in supporting India’s energy infrastructure, decarbonization goals, and industrial self-reliance in the years to come.
Comments