JSW Green Steel bets big on Salav

JSW Steel is preparing to lead India’s shift to sustainable manufacturing with a monumental investment of ₹50,000-60,000 crore in its Salav Works facility in Maharashtra.

Over the next three to four years, this capital infusion will bolster the unit’s production capacity to 10 million tonnes, with a sharp focus on producing green steel for export markets. The announcement was made by Chairman Sajjan Jindal at a recent industry gathering, underscoring JSW’s strategic pivot toward cleaner industrial practices and its long-term ambition to meet global climate commitments. The Salav plant, which until recently housed a direct reduced iron (DRI) capacity of 0.9 million tonnes, was transferred to JSW’s newly formed subsidiary, JSW Green Steel, in a slump sale last month. The revamped unit is envisioned as a clean-tech flagship that aligns with evolving international regulations, particularly the European Union’s Carbon Border Adjustment Mechanism (CBAM) slated to take effect in 2026. CBAM aims to equalise the carbon cost of domestic and imported products within the EU, thereby creating an urgent incentive for exporters like JSW to decarbonise operations. Green steel, which relies less on coking coal and more on cleaner fuels, is becoming a critical requirement in this evolving regulatory landscape.

Initially, the Salav unit will be fuelled by natural gas, a less polluting alternative to coal, but it has been designed with future readiness in mind. According to Jindal, the plant has the flexibility to transition to hydrogen-based steel production when green hydrogen becomes more commercially viable. This positions JSW at the forefront of India’s green industrial transition, supporting the country’s broader net-zero ambitions and reinforcing its place in global decarbonisation conversations. The move could also serve as a template for other steelmakers navigating similar environmental and regulatory shifts. JSW Green Steel, incorporated in February 2023, had earlier planned for a capacity of 4 million tonnes at Salav, according to Joint Managing Director Jayant Acharya. However, with the fresh investment announced, the company is scaling up its ambitions, not just at Salav but across its portfolio. JSW Steel currently holds the distinction of being India’s largest steelmaker, with an annual production capacity exceeding 30 million tonnes. Jindal has openly stated the company’s aspiration to eventually reach 100 million tonnes, a benchmark he acknowledges is formidable but necessary in light of growing global demand and sustainability imperatives.

India’s steel industry is at an inflection point. Domestic giants including Tata Steel, Jindal Steel and Power, AM/NS India, and SAIL are all actively expanding capacities. However, the JSW Salav initiative stands out for its explicit alignment with climate-centric policies and its export-oriented strategy. By anchoring its investment in green steel, JSW is not just responding to global regulatory pressures but also attempting to redefine the narrative around Indian manufacturing—from carbon-intensive to climate-resilient. This transformative project in Maharashtra signals more than just a capacity addition. It reflects a shift in industrial consciousness, one that may hold the key to India’s credibility as a clean manufacturing hub. While timelines remain fluid for the company’s 100 million tonne ambition, the Salav facility offers a compelling starting point for what could become a national blueprint. In the march toward net-zero, investments like this not only reinforce industrial growth but also empower India’s global climate diplomacy.

JSW Green Steel bets big on Salav