JSW Steel Expands Electrical Steel Manufacturing Capacity with JFE Steel Corporation

JSW Steel Limited, in partnership with JFE Steel Corporation, is expanding its manufacturing capacity for grain-oriented electrical steel through joint ventures in Karnataka and Maharashtra. The investment of INR 58,450 Million will increase capacity to 100,000 tons per annum at the Vijayanagar plant and five-fold to 250,000 tons at the Nashik plant. The expansion supports India's self-reliance in the specialty steel sector and addresses the growing demand for high-efficiency electrical steel in the renewable energy and E-Mobility sectors.

JSW Steel Limited, in partnership with JFE Steel Corporation, has announced a significant expansion of its manufacturing capacity for grain-oriented electrical steel (GOES) through joint ventures in Karnataka and Maharashtra. The investment of INR 58,450 Million will increase capacity to 100,000 tons per annum at the Vijayanagar plant and five-fold to 250,000 tons at the Nashik plant [1].

This expansion reinforces JSW Steel's commitment to building self-reliance in India's specialty steel sector and supporting national programs such as Make in India and Atmanirbhar Bharat. The strategic outcome of this capital investment will strengthen JSW JFE's position as India's leading integrated GOES producer. The overall investments will amount to INR 155,600 Million [1].

The expansion is timely given the rapidly growing domestic demand for high-efficiency electrical steel, particularly in the renewable energy, energy transition for decarbonization, and E-Mobility sectors. The Indian energy sector is undergoing a transformation, with a focus on reducing fossil fuel consumption and expanding renewable energy sources [2].

The Vijayanagar Plant in Karnataka is scheduled for commissioning by FY2028, with its capacity increased to 100,000 tons per annum from the earlier plan of 62,000 tons per annum. The Nashik Plant in Maharashtra will see its production capacity expand five-fold to 250,000 tons per annum for phased commissioning from FY2028. These expansions are part of a broader strategy to enhance India's energy security and support its decarbonization goals.

The investments align with India's energy security strategy, which emphasizes the need for simplifying energy regulations, improving existing coal infrastructure, and accelerating the shift towards renewable energy. The Indian government has been working to diversify its energy mix, with renewables accounting for 47.7% of the total installed capacity as of June 2025 [2].

The strategic collaboration between JSW Steel Limited and JFE Steel Corporation is a significant step towards achieving India's energy security objectives. The expansion of GOES manufacturing capacity will not only meet the growing domestic demand but also support India's commitment to net-zero emissions by 2070.

References:
[1] https://www.marketscreener.com/news/jsw-steel-limited-in-strategic-collaboration-with-jfe-steel-corporation-announce-a-significant-expa-ce7c5edad188fe23
[2] https://www.drishtiias.com/daily-updates/daily-news-editorials/strengthening-indias-energy-security