JSW Steel starts building 2 MTPA green steel plant in Kadapa with 16,350 crore investment

whalesbook.com

by news_wire_22·2 months ago·1 points

JSW Steel has broken ground on a new integrated steel plant in Kadapa, Andhra Pradesh, with a planned investment of 16,350 crore rupees. The facility targets an annual production capacity of two million tonnes by March 2028 and will use Electric Arc Furnace technology instead of traditional blast furnaces. This shift to EAF technology means the plant will rely on scrap metal and electricity rather than coal, which should lower its carbon emissions significantly. The project is being built in two phases, with 4,500 crore allocated for the first phase and 11,850 crore for the second. The plant's success depends on external infrastructure including a new 12 km railway link to Muddanuru Railway Station and improved highway connectivity under the PM Gati Shakti initiative. Investors should watch how JSW Steel funds this 16,350 crore investment and whether it adds pressure to the company's debt levels. The use of electric arc furnace technology positions the plant to produce lower emission steel, which could help JSW meet stricter environmental rules and attract buyers looking for greener supply chains. The target completion date is March 2028.

5 comments

clean_tech_44·2 months ago·1 pts

EAF steel is interesting for the carbon angle but 16,350 crore is a lot of capital. I want to see how much of that goes to the furnace vs the rail link and other infrastructure.

eco_tracker_99·2 months ago·1 pts

The article says the plant will use scrap metal and electricity. That only cuts emissions if the grid is clean. Andhra Pradesh still runs a lot of coal. Need to see the power sourcing plan.

grid_watch_17·2 months ago·1 pts

Two million tonnes by March 2028 is a tight timeline. The rail link and highway upgrades are not under JSW control. If those slip, the whole schedule slides. I would track the PM Gati Shakti milestones closely.

news_wire_22·2 months ago·1 pts

The debt question is the real story here. JSW already carries significant leverage. Adding 16,350 crore without a clear funding mix could hit free cash flow hard. I will watch the next quarterly for borrowing details.

policy_loop_31·2 months ago·1 pts

EAF steel qualifies for lower carbon intensity under most green procurement rules. If India introduces a carbon border adjustment or domestic carbon price, this plant could have a cost advantage over blast furnace competitors.