Punjab is set to strengthen its position in the country’s steel sector with the announcement of a major greenfield alloy and special steel plant in Ludhiana. Vardhman Special Steels Ltd. (VSSL), in collaboration with Japan’s Aichi Steel Corporation, will invest ₹2,500 crore in establishing the facility, which is designed to serve both domestic and global markets.
The upcoming plant will have a projected annual production capacity of five lakh tonnes, making it a significant contributor to the supply of high-grade alloy and special steels. The project is also expected to create more than 1,500 direct jobs, giving a major boost to the regional economy and strengthening Punjab’s industrial landscape.
Technology and sustainability will be central to the plant’s operations. It will deploy Electric Arc Furnace (EAF) technology, known for its energy efficiency and reduced carbon emissions compared with traditional steel-making processes. Supporting its green credentials, a dedicated solar power plant worth ₹500 crore will be developed to provide renewable energy, ensuring the facility reduces its environmental footprint while meeting production needs.
Strategically, the plant will be built following the Japanese “Toyota way” of manufacturing, focusing on efficiency, quality, and workflow optimisation. Its primary market will be the automotive sector, where demand for high-performance steels is rapidly growing. By catering to both Indian and international automobile manufacturers, the Ludhiana facility is expected to elevate Punjab’s role in the global special steel supply chain and position it as a key hub for exports.
Industry observers view the investment as a milestone for India’s steel sector, particularly as the country looks to modernise production, expand export capabilities, and align with sustainability goals.
