8INDIAREVIEWAUGUST, 2025JSW STEEL & JFE TO INVEST 58 BILLION TO ENHANCE ELECTRICAL STEEL OUTPUTIndia's JSW Steel and Japan's JFE Steel will invest 5,845 crore (~US$669 million) in expanding the facilities to produce cold-rolled, grain-oriented electrical steel (CRGO) at two sites in India. The two companies are creating a joint venture - JSW JFE Electrical Steel - that will substantially increase capacity at the Nashik and Vijayanagar plants. This is an important development to supply the ever increasing need for energy-efficient steel in India. CRGO steel is a key input into high efficiency transformers, generators & motors used for expanding power grids, industrial electrification and data center infrastructures.At the Nashik site (previously owned by Thyssenkrupp--acquired for 4,159 crore in January) throughput will be going from 50,000 tonnes per annum (TPA) to 250,000 TPA with the support of a 4,300 crore expansion. The Vijayanagar site will go from 62,000 to 100,000 TPA with a 1,545 crore expansion. Both companies will contribute 1966 crore in equity to the project; the remainder of the required capital is expected to be sourced from additional financing methods. Phase commissioning of the expanded capacity of 350,000TPA will take place from FY2028.The joint venture further builds on JSW­JFE's acquisition of the Nashik facility and forms part of a broader corporate strategy to build import-substitution and infrastructure support relating to India's energy transition plan. JFE's Q1 profits are down 74% as a result of continued weakness in domestic demand; nonetheless, overseas partnerships are critical to their push for global growth in line with their partnership with JSW.The CRGO capacity build-up aligns towards nationally significant objectives of grid modernization, greater integration of renewables and electrification-led industrial growth, and is supported by policy frameworks such as Make in India, Atmanirbhar Bharat, and pledge to accelerate investment in critical infrastructure. IMRTOP STORIES· JSW Steel - JFE JV to invest 5,845 Cr to scale CRGO capacity to 350,000 TPA by FY28.· Nashik capacity jumps from 50k to 250k TPA; Vijayanagar from 62k to 100k TPA.· Expansion supports India's energy transition and state-backed infrastructure goals.
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