JSW Steel and Japan’s JFE Steel have announced a strategic collaboration to invest ₹58.45 billion (approximately $669 million) to ramp up the production capacity of cold-rolled grain-oriented (CRGO) electrical steel in India. This major investment underscores the growing demand for high-efficiency electrical steel, which plays a vital role in the manufacturing of transformers and other critical components used in the power and renewable energy sectors.
The joint venture aims to boost the capacity of their CRGO manufacturing plant in Maharashtra’s Nashik district from the current 50,000 tonnes per annum to 250,000 tonnes. In addition, their Vijayanagar facility in Karnataka will be expanded to 100,000 tonnes by the end of the decade. These expansions are expected to significantly reduce India’s dependence on CRGO steel imports and support the country’s growing needs for smart grid infrastructure, clean energy systems, and data center development.
CRGO steel is a specialty product known for its superior magnetic properties, low core loss, and energy efficiency, making it essential for the manufacture of high-performance electrical equipment. The demand for such materials is increasing as India accelerates investments in its power transmission and renewable energy sectors.
Both companies emphasised the strategic importance of this move in advancing the goals of Aatmanirbhar Bharat by strengthening domestic manufacturing capabilities. The project will also foster technology transfer, create skilled jobs, and support the growth of local supply chains.
Sources familiar with the development highlighted that the investment aligns with India’s broader vision of self-reliance in critical industrial segments and reinforces the country’s position as an emerging global hub for high-grade electrical steel production. The expanded production is also expected to cater to export markets in the future, especially in Southeast Asia and the Middle East.
