JSW, Japan's JFE to invest ₹5,845 cr to scale up India steel output

• JSW-JFE to invest ₹5,845 crore in CRGO electrical steel production expansion.
• CRGO steel boosts energy efficiency, reduces carbon emissions, and lowers import dependence.
• JSW Neo Energy signs 25-year SECI PPA for 230 MW renewable energy.

JSW Steel and Japan-based JFE Steel are setting up a new investment of ₹5,845 crore (approximating $669 million) to ramp up production of cold rolled grain-oriented (CRGO) electrical steel at two of its plants in India. The mechanism is targeted at satisfying the increasing domestic demand of energy efficient steel with primary application in transformers and other power applications, according to the sources.

JSW-JFE Steel will expand operations in its Nashik plant by increasing production to 250,000 tonnes per annum (TPA) as opposed to 50,000 TPA. This will be through an investment of 4300 crores. The other 1,545 crore would be invested in increasing capacity at the new Vijayanagar plant to 100,000 TPA up to 62,000 TPA.

The great energy efficiency of CRGO electrical steel is well-known for lowering carbon emissions and transmission losses. With more capacity at home, India may be less dependent on imports of this vital component for the electrical industry.  Phased implementation of the additional capacity will begin in FY28.

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Thyssenkrupp of Germany sold the Nashik facility to JSW JFE earlier this year for ₹4,159 crore. The joint venture's expansion plan is based on the plant.

JSW Neo Energy, a subsidiary of JSW Energy, and the Solar Energy Corporation of India (SECI) have inked a 25-year Power Purchase Agreement (PPA), accordign to the sources.

Under SECI's Tranche IV program, 230 MW of firm and dispatchable renewable energy (FDRE) are covered by the agreement. The price per kWh has been set at ₹4.98.

Including 12.9 GW under construction, this is the company's first FDRE PPA and increases its overall locked-in capacity to 30.2 GW. JSW wants to have 40 GWh of energy storage and 30 GW of installed capacity by 2030.