SAIL, John Cockerill to Invest ₹6,000 Crore in Steel Plant
In a landmark collaboration, Steel Authority of India Limited (SAIL) and John Cockerill India are set to jointly invest approximately ₹6,000 crore in the establishment of a downstream steel plant. The facility will focus on the production of cold-rolled grain-oriented (CRGO) and cold-rolled non-oriented (CRNO) electrical steels, which are critical components in transformer and generator manufacturing. This initiative is expected to significantly reduce India’s dependence on imports for these vital materials.
The raw material for the new plant—hot-rolled coils (HRCs)—will be supplied by SAIL. The downstream steel unit is anticipated to be set up at one of SAIL’s existing production sites, though the final location decision is yet to be confirmed. The project is expected to be completed between 2027 and 2029, according to sources familiar with the development. This joint venture follows the signing of a memorandum of understanding (MoU) between SAIL and John Cockerill India in November 2024, focusing on advanced green steel technologies. The partnership aims to promote the development of sustainable steel solutions in India, with a particular emphasis on carbon steel, green steel, and silicon steel production.
The downstream plant is expected to have a production capacity of 1.5 million tonnes per annum (MTPA). SAIL also plans to set up an electric arc furnace as part of its green steel initiative, which will be used to produce cold-rolled steel sheets. This aligns with the government’s new definition of green steel, which is defined as steel produced with a CO2 equivalent emission intensity of less than 2.2 tonnes of CO2 per tonne of finished steel. Given the steel industry’s high carbon footprint, this move is part of India’s broader efforts to reduce emissions and promote sustainability within the sector.
In an effort to transform India’s iron and steel production, the MoU outlines a roadmap where 2025 will focus on feasibility studies, 2026 will be dedicated to legal and financing frameworks, and the formal project kick-off is expected in 2027. According to Michael Kotas, Managing Director of John Cockerill India, this MoU marks the beginning of extensive discussions between both companies, as the project needs to make economic sense for both parties. Currently, India imports the majority of its CRGO sheets, consuming around 400,000 tonnes annually, of which only 50,000 tonnes is produced domestically. The new plant will thus help to meet the growing demand for these specialised steel products, positioning India as a key player in the global market for electrical steels.
