JSW Steel and Japan’s JFE Steel Approve ₹5,845 Crore Investment to Expand Grain‑Oriented Electrical Steel Capacity.
Economy Business
In August 2025, India's JSW Steel and Japan’s JFE Steel Corporation jointly approved a ₹5,845 crore expansion package through their joint venture—JSW JFE Electrical Steel—to boost production of cold-rolled grain-oriented electrical steel (CR‑GOES) at two Indian plants.
- The Nashik facility’s annual production capacity is set to increase fivefold, from 50,000 to 250,000 tonnes per annum (TPA), with an investment of ₹4,300 crore. The Vijayanagar plant in Karnataka will expand from 62,000 to 100,000 TPA, backed by an additional investment of ₹1,545 crore.
- The total investment of ₹5,845 crore (≈ US$669 million) includes equity of ₹1,966 crore funded equally by JSW Steel and JFE Steel. The remainder is sourced via debt and internal funds.
- Upon completion, the joint venture will deliver a combined cold‑rolled grain‑oriented electrical steel capacity of 350,000 TPA, with phased commissioning expected from FY2028 to meet growing domestic demand.
Main Point :- (i) GR‑GOES is a high-efficiency steel used in transformers, generators, and electric vehicle motors. The expansion supports India’s clean energy transition, decarbonization goals, import substitution strategy, and infrastructure development in power and data center segments.
(ii) JSW JFE Electrical Steel is a 50:50 joint venture formed in 2023 when JSW acquired the Nashik facility (formerly Thyssenkrupp Electrical Steel India). It combines JFE’s advanced CRGO technology with JSW’s domestic scale to strengthen India’s specialty steel ecosystem.
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