Punjab has attracted over INR 5,400 crore in investments in the steel sector over the past year, strengthening its position as an emerging steel hub in North India.
Feb 24, 2026
Punjab has attracted over INR 5,400 crore in investments in the steel sector over the past year. The state has two major steel clusters located in Mandi Gobindgarh and Ludhiana. Mandi Gobindgarh has around 300 units, including furnaces and rolling mills, contributing significantly to India’s secondary steel market. Ludhiana has strong downstream demand for steel.
Among the major investments are JSW Steel, which has committed INR 1,500 crore for a plant at Rajpura. Tata Steel has set up a unit in Ludhiana with an investment of INR 2,600 crore. Vardhman Special Steels is investing INR 342 crore in Ludhiana, while AISRM Multimetals Private Limited has announced an investment of INR 1,003.57 crore at Jaspallon village.
Industry leaders and the state government attribute the surge in steel investment to Punjab’s proximity to high-demand markets and policy incentives introduced by the government.
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Industry and Investment Promotion Minister Sanjeev Arora told a media outlet that the demand for specialty steel & alloy and auto grade steel is rising in the automobile and engineering clusters. Moreover, with a global focus on green steel and decarbonisation, scrap-based steel production in Punjab is gaining traction from big steel manufacturers, who already have coal-based integrated steel plants in other parts of the country.
