ArcelorMittal Nippon Steel India (AM/NS India) has announced a strategic ₹60,000 crore Phase I investment aimed at expanding its flagship Hazira facility in Gujarat from 9 million tonnes per annum (MTPA) to 15 MTPA by 2026–27. This expansion is a significant component of the company’s green-steel ambition, which targets 70 per cent of its output meeting India’s new Green Steel Taxonomy criteria by 2027.
The investment not only boosts capacity but also integrates sustainability into steel production. AM/NS India plans to scale up captive scrap-processing infrastructure-expanding beyond its existing facility in Khopoli, Maharashtra, with three new centres-to increase the share of recycled material in its steelmaking process. Additionally, the company is enhancing renewable energy usage via hybrid power projects like the one in Kurnool, Andhra Pradesh, and implementing technologies such as digitisation and machine learning to improve energy efficiency.
This green push aligns directly with India’s December 2024 Green Steel Taxonomy, which defines compliant steel as having CO₂ emissions under 2.2 tCO₂ per tonne of steel, evaluated through a star-rating system. Currently, AM/NS India’s Hazira plant already achieves emissions of 2.17 tCO₂/t, lower than the national average, and the company plans to further reduce this to 1.8 tCO₂/t by 2030.
Industry observers view this move as both a market-driven and policy-aligned decision. As India gears up to mandate green-steel procurement for public projects, companies like AM/NS India position themselves ahead with compliant capacity. Moreover, global trade shifts-such as looming carbon border adjustments-make low-carbon steel increasingly valuable for exports.
The ₹60,000 crore investment underscores AM/NS India’s commitment to modernizing its operations. Beyond expanding to 15 MTPA, the company is laying groundwork for potential future phases, with plans to further scale through integrated green technologies. By effectively merging capacity growth with decarbonisation, AM/NS India is setting a benchmark in sustainable industrial transformation within India’s steel sector.
