- 16 Apr 2025
- ICICIdirect Research
JSW STEEL IS PLANNING TO INVEST RS 50000 TO RS60000 CRORES IN GREEN STEEL PRODUCTION
JSWSTEEL - 1022 Change: -16.50 (-1.59 %)News: As per media sources, the company is planning to invest ₹50,000 to ₹60,000 crores in green steel production at its Salav unit. The production capacity will be scaled up to 4 million tonnes (MT), with a further increase to 10 MT over the next 3 to 4 years period.
View: This facility will cater to export markets in Europe, aligning with the European Union’s Carbon Border Adjustment Mechanism (CBAM), which is set to be implemented from Jan’26. CBAM aims to impose carbon related tariffs on high emission imports. Initially, the plant will use natural gas injection in the blast furnace, transitioning to green hydrogen at a later stage. We maintained our positive stance on JSW Steel given its strategic capacity expansion, favorable steel demand domestically and anticipated profitability improvements.
Impact: Positive