JSW Group is establishing a green steel plant in Salav, Raigad, Maharashtra, aimed at exporting steel to the European Union (EU) in compliance with the bloc’s Carbon Border Adjustment Mechanism (CBAM). The facility will operate under JSW Steel’s wholly owned subsidiary, JSW Green Steel.
The project, a brownfield development, will eventually reach a capacity of 10 mln tons per annum. Chairman Sajjan Jindal stated that the group plans to invest INR 50,000-60,000 crore (USD 5.8-6.9 bln)over the next three to four years. JSW Green Steel was incorporated in February 2024 to spearhead this initiative and support the company’s broader decarbonization goals.
CBAM, introduced by the EU in 2023 and set to take full financial effect from January 1, 2026, will impose carbon tariffs on imports of emissions-intensive goods like steel, cement, and fertilizers. Given that Indian steel production, which predominantly relies on coal-based blast furnaces, emits 2.5-2.6 tons of CO2 per ton of steel, higher than the global average of 1.85 tons, industry estimates suggest a 20-35pct increase in tax burden for Indian producers.
JSW’s green steel facility is expected to produce steel with just one-fifth the carbon intensity of conventional Indian steel, Jindal said.
He also emphasized the need to protect the Indian steel sector from low-cost imports, particularly from China. According to Jindal, a safeguard duty is under consideration by the government and may be implemented soon.
Highlighting the capital-intensive nature of steelmaking in India, Jindal noted that the country requires approximately 20 mln tons per annum of new steel annually, necessitating USD 20 bln in yearly investments. Unlike China’s mature, largely state-owned steel industry, he said, Indian producers must maintain profitability to reinvest and expand capacity.
1 USD / 85.7 INR