JSW Goes Green with Steel Unit Aimed at European Exports
Wednesday, 16 April 2025, 12:16 IST
JSW Group is establishing a green steel facility committed to producing steel for export to the European Union (EU). The initiative is in accordance with the EU's Carbon Border Adjustment Mechanism (CBAM) requirement. The facility will be established at Salav in Raigad, Maharashtra, and run as a wholly-owned subsidiary of JSW Steel as JSW Green Steel.
"Eventually, the brownfield steel plant will have a capacity of 10 MTPA, and we will be investing Rs 50,000-60,000 crore in the next three-four years", JSW Group chairman Sajjan Jindal stated. He made the statement during an Indian Chamber of Commerce function here.
JSW Green Steel was established in February last year to establish a 4 million tonne per annum (MTPA) integrated green steel plant as a part of the steel major's strategy to lower its carbon footprint.
EU's CBAM regulations have started since 2023, although the complete fiscal impact will begin from January 1, 2026. According to CBAM, the EU will levy carbon tariffs on the importation of carbon-intensive products, such as steel, cement and fertilisers.
Indian steel producers, who employ coal-based blast furnaces primarily, are more carbon-intensive with an average of 2.5-2.6 tonnes CO₂ emissions per tonne of steel produced compared to the rest of the world's average of 1.85 tonnes CO2 for every tonne of steel. Due to this, industry estimates reveal the overall tax burden on India's steel industry is expected to go up by 20-35 percent.
The steel manufactured in JSW's specialized green steel facility will have half the carbon footprint of Indian steel today, Jindal added.
He reasserted that the Indian steel industry must be safeguarded against the threat of foreign dumping of steel, particularly from China. "The government is extremely alert to this and the suggestion for imposition of safeguard duty has been made. In a couple of days, I believe, this safeguard duty will be implemented", Jindal stated.
He also indicated that for the growing Indian steel industry, steelmakers have to earn sufficient profit so that they can invest in the business again and increase it. On the other hand, China's steel industry is mature and predominantly state-owned and no longer requires an excess. "They (China) can sell at any price whereas we must make profits to then redeploy that money to build up our capacity, India needs nearly 20 million tonne fresh steel annually that needs near $20-billion investment. India requires that amount of investment (for steel) year-on-year", he stated
"Eventually, the brownfield steel plant will have a capacity of 10 MTPA, and we will be investing Rs 50,000-60,000 crore in the next three-four years", JSW Group chairman Sajjan Jindal stated. He made the statement during an Indian Chamber of Commerce function here.
JSW Green Steel was established in February last year to establish a 4 million tonne per annum (MTPA) integrated green steel plant as a part of the steel major's strategy to lower its carbon footprint.
EU's CBAM regulations have started since 2023, although the complete fiscal impact will begin from January 1, 2026. According to CBAM, the EU will levy carbon tariffs on the importation of carbon-intensive products, such as steel, cement and fertilisers.
Indian steel producers, who employ coal-based blast furnaces primarily, are more carbon-intensive with an average of 2.5-2.6 tonnes CO₂ emissions per tonne of steel produced compared to the rest of the world's average of 1.85 tonnes CO2 for every tonne of steel. Due to this, industry estimates reveal the overall tax burden on India's steel industry is expected to go up by 20-35 percent.
The steel manufactured in JSW's specialized green steel facility will have half the carbon footprint of Indian steel today, Jindal added.
He reasserted that the Indian steel industry must be safeguarded against the threat of foreign dumping of steel, particularly from China. "The government is extremely alert to this and the suggestion for imposition of safeguard duty has been made. In a couple of days, I believe, this safeguard duty will be implemented", Jindal stated.
He also indicated that for the growing Indian steel industry, steelmakers have to earn sufficient profit so that they can invest in the business again and increase it. On the other hand, China's steel industry is mature and predominantly state-owned and no longer requires an excess. "They (China) can sell at any price whereas we must make profits to then redeploy that money to build up our capacity, India needs nearly 20 million tonne fresh steel annually that needs near $20-billion investment. India requires that amount of investment (for steel) year-on-year", he stated
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