India’s largest steelmaker, JSW Steel, is preparing a massive investment plan of more than ₹2 lakh crore over the next five years to add close to 25 million tonnes of fresh capacity, underscoring its confidence in sustained domestic demand growth.
The investment will be funded through internal cash flow generation along with a calibrated use of debt and will be spread across capacity expansion, downstream value-added facilities, mine development, digital infrastructure and artificial intelligence adoption.
On Friday, the Sajjan Jindal-led company’s board approved a 5 million tonne greenfield steel plant at Paradip in Odisha, taking the company’s ongoing capital expenditure beyond ₹1 lakh crore. With this addition, JSW Steel’s installed capacity in India is set to rise to 47.4 million tonnes by the end of 2030.
However, the company is exploring multiple additional growth opportunities and expects to seek board approvals for several new projects over the next one to two years. “We will be exceeding ₹2 lakh crore,” Jayant Acharya, Joint Managing Director and CEO of JSW Steel, told The Telegraph.
Beyond current projects, JSW Steel is evaluating a further 5 million tonne expansion at its Vijayanagar plant in Karnataka and a new 2 million tonne low-carbon or green steel facility at Salav in Maharashtra. These additions could take the company’s capacity to over 56 million tonnes by FY31.
The company also retains the option to expand the Paradip facility by another 5 million tonnes and double Salav’s capacity to 4 million tonnes. Separately, JSW Steel plans to scale up Bhushan Power and Steel Ltd to 10 million tonnes from 4.5 million tonnes in partnership with Japan’s JFE Steel.
“If we can go to 55 million tonnes or more by FY31, including expansion, downstream, mining and digital investments, the capex will easily exceed ₹2 lakh crore,” Acharya said.
Despite steel prices touching multi-year lows in the last quarter, prices recovered from the second half of December through January. JSW Steel reported EBITDA of ₹22,335 crore for the first nine months, nearly matching its full-year FY25 generation. Annualised EBITDA of around ₹30,000 crore is expected to rise further by FY28 as an additional 7 million tonnes of capacity comes on stream.
The company’s balance sheet is also set to strengthen, with debt expected to reduce by ₹37,000 crore by June following JFE Steel’s acquisition of a 50% stake in Bhushan Power and Steel. This deleveraging is expected to provide headroom for future expansion while maintaining financial discipline.
JSW Steel expects domestic demand to absorb the additional volumes, with incremental consumption of 11 million tonnes in FY26 and 13 million tonnes in FY27. Demand is likely to be driven largely by public expenditure, which the company hopes will receive a boost in the upcoming Union Budget, alongside early signs of a revival in private capital expenditure.
Strong domestic demand is also expected to offset challenges in export markets such as Europe, where the carbon border adjustment mechanism has taken effect. JSW Steel plans to divert more volumes to the Indian market and non-European geographies to manage these headwinds.
