CRGO steel expansion by JSW and JFE with ₹5,845 crore investment will boost India’s local electrical steel production in Nashik and Vijayanagar by FY2028.
JSW Steel & JFE Steel to Invest ₹5,845 Crore in India’s CRGO Electrical Steel Expansion 🚀
Background: Collaboration Between JSW and JFE
JSW Steel Limited and Japan’s JFE Steel Corporation have announced a ₹5,845 crore joint investment to significantly expand the Cold Rolled Grain‑Oriented (CRGO) electrical steel production in India. The expansion targets two sites: Nashik in Maharashtra and Vijayanagar in Karnataka
Nashik Project Expansion
The Nashik facility—acquired from Germany’s Thyssenkrupp—is to be expanded from 50,000 TPA to 250,000 TPA, with a projected capital expenditure of ₹4,300 crore. This five-fold increase is core to meeting the booming demand for CRGO steel
Vijayanagar Project Enhancement
The Vijayanagar plant initially planned at 62,000 TPA capacity will now be upgraded to 100,000 TPA, with an additional investment of ₹1,545 crore. This aligns with the push to ramp up local manufacturing of high-grade electrical stee
Equity Funding & Capacity Timeline
Out of the total ₹5,845 crore, ₹1,966 crore will be shared equally between JSW Steel and JFE as equity funding (₹983 crore each). The remaining project funding source was not disclosed. The expansion is slated to be commissioned in phases starting from FY2028
Impact on National Capacity & Strategic Goals
Once complete, the joint venture’s total CRGO capacity in India will reach 350,000 TPA, reinforcing India’s stance in specialty steel production. The move aligns with national goals such as Make in India, Atmanirbhar Bharat, decarbonisation, and enhancing energy infrastructure for data centres, e-mobility, and renewable energy projects
Future Outlook
JSW Steel, already India’s top integrated steel producer, is accelerating its transition into value‑added steel products, including CRGO, to tap into growing demand from the energy sector. JFE brings global technology and expertise to the venture. Together, the expansion underlines India’s shift toward self-reliance in critical materials used in power transmission and digital infrastructure
Why This News Is Important
Significance for India’s Energy and Industrial Infrastructure
Grain‑oriented electrical steel (CRGO) is essential for manufacturing transformers and high-efficiency generators, helping reduce losses in power transmission and enabling energy-efficient systems. As India transitions to renewable energy and digital infrastructure growth—especially data centres, e‑mobility, and smart grids—the demand for CRGO is surging
Strategic Relevance to Economic Independence
This massive ₹5,845 crore commitment strengthens import substitution by reducing dependency on foreign suppliers for CRGO steel. It supports national initiatives like Make in India and Atmanirbhar Bharat, pushing India toward self-sustaining industrial growth in high‑value materials
Relevance for Government Exam Aspirants
Students preparing for competitive exams often encounter questions on industrial policy, infrastructure development, energy transition, and public‑private partnerships. This project exemplifies how a joint venture between Indian and global firms can align with government programmes, boosting local manufacturing while addressing national energy and technology goals. Understanding this case helps in subjects like Economics, General Studies Paper II (Indian Economy), and GS Paper III (Infrastructure & Technology).
Historical Context: Evolution of CRGO Production in India
Early Industry Milestone: Thyssenkrupp’s Nashik Facility
India’s first CRGO production plant was inaugurated by Thyssenkrupp Electrical Steel India, marking the foray into specialty electrical steel manufacturing. In early 2025, JSW Steel and JFE acquired this Nashik plant for approximately ₹4,159 crore—establishing their entry into CRGO production
Joint Venture Formation & Prior Plans
Following the acquisition, JSW JFE Electrical Steel Private Limited (J2ES) was set up as a 50:50 JV between JSW and JFE. Initial plans included a 62,000 TPA plant in Vijayanagar with investment near ₹5,557 crore. As demand projections climbed, capacity plans expanded accordingly
Surge in Domestic Demand & Policy Push
India’s accelerating infrastructure projects and ambitious targets for renewable energy generation have heightened the requirement for imported CRGO steel. Government pushes like PLI schemes for specialty steel and incentives for green energy adoption provided momentum to this expansion
Key Takeaways from “JSW‑JFE ₹5,845 Crore CRGO Expansion”
| No. | Key Takeaway |
|---|---|
| 1️⃣ | JSW Steel and JFE Steel are investing ₹5,845 crore to expand CRGO capacity in India. |
| 2️⃣ | Nashik facility will scale from 50,000 to 250,000 TPA (₹4,300 crore). |
| 3️⃣ | Vijayanagar plant is upgraded from 62,000 to 100,000 TPA (₹1,545 crore). |
| 4️⃣ | Equity funding of ₹1,966 crore will be equally shared by JSW and JFE. |
| 5️⃣ | Total CRGO capacity in India through the JV will reach 350,000 TPA by FY2028. |
FAQs – Frequently Asked Questions
1. What is CRGO steel, and why is it important?
CRGO (Cold Rolled Grain-Oriented) electrical steel is used in the manufacturing of transformers and energy-efficient generators. It reduces energy loss during power transmission and plays a crucial role in energy infrastructure.
2. Who are the two companies involved in this investment?
The joint venture is between JSW Steel Ltd (India) and JFE Steel Corporation (Japan).
3. What is the total investment announced for this expansion?
The total investment is ₹5,845 crore, jointly made by JSW Steel and JFE Steel.
4. Where are the CRGO expansion projects being implemented?
The projects are being carried out at Nashik (Maharashtra) and Vijayanagar (Karnataka).
5. When is the project expected to be completed?
The full capacity expansion is planned to be commissioned in phases from FY2028 onwards.
6. What is the equity contribution by each company in the JV?
Both JSW and JFE will contribute ₹983 crore each as equity (total ₹1,966 crore).
7. How will this expansion impact India’s steel sector?
It will reduce import dependency, boost local manufacturing of high-grade CRGO steel, and support strategic initiatives like Make in India and Atmanirbhar Bharat.
8. What was the previous capacity at Nashik?
The Nashik plant had a capacity of 50,000 TPA, which will be expanded to 250,000 TPA.
9. What is the significance of the Vijayanagar project?
The Vijayanagar plant’s capacity will grow from 62,000 TPA to 100,000 TPA, supporting southern India’s industrial demand.
10. How is this news relevant to competitive exams?
It relates to current developments in infrastructure, industry, and energy sectors, which are important for questions in General Studies, Economics, and Industrial Policy papers.
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