Vardhman Special Steels Limited has approved an investment of INR 2000 crore for the establishment of a new green steel plant in Punjab, focusing on the manufacturing of special and alloy steels. The facility will also increase billet production capacity from the current 300,000 MTPA to 500,000 MTPA. 

Apr 22, 2025

Vardhman Special Steels Limited has approved the establishment of a new green steel plant in Punjab, aimed at significantly enhancing its production capabilities and supporting the growing market demand. 

The new facility will focus on the manufacturing of special and alloy steels, and will boost the company’s billet production capacity from the current 300,000 metric tonnes per annum to 500,000 metric tonnes per annum.

The project involves a capital investment of approximately INR 2,000 crore, which will be funded through a mix of equity, debt, and internal accruals. This strategic expansion is aligned with the company’s long-term growth plans.

According to company officials, the existing plant is projected to face capacity constraints beyond 2028. The new facility will not only fulfill these demands but also optimize manufacturing costs by leveraging advanced and eco-friendly technologies.

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The plant will adopt the Electric Arc Furnace (EAF) route, in line with emerging trends in green steel production and the circular economy. In addition to increasing capacity, the company also plans to diversify its product portfolio with the inclusion of wire rods, forging steel, and offering tailored products to non-automotive segments. This expansion marks a pivotal step in Vardhman Special Steels’ journey toward sustainable growth and capacity expansion.