Punjab Cabinet Minister Sanjeev Arora announced that Vardhman Special Steels Limited (VSSL), in partnership with Japan’s (ASC), is setting up a new Greenfield Special & Alloy Steel Plant in Ludhiana district.
Minister Sanjeev Arora : This initiative aligns with Punjab’s vision to become a major industrial hub and promote ease of doing business, while establishing a technologically advanced, sustainable, and globally competitive steel manufacturing facility.
Speaking to the media, Minister Sanjeev Arora stated that the total investment in the project is ₹2,500 crore. The plant will have an installed capacity of 5 lakh tonnes per annum (TPA) of alloy and special steel, serving both domestic and international automotive markets. Using the Electric Arc Furnace (EAF) method, the plant will ensure energy-efficient, low-carbon, and clean steel production.
He further mentioned that a solar power plant will also be developed at a cost of ₹500 crore, in collaboration with project partners, to supply renewable energy for operations. This is over and above the ₹2,000 crore estimated cost for the Greenfield steel plant itself.
The project is expected to generate significant employment in Punjab, providing direct jobs for over 1,500 people and creating substantial indirect opportunities for MSMEs, suppliers, and service providers across the state. Arora emphasized that the plant will mark a milestone in Punjab’s industrial growth, strengthening the state’s position in advanced and sustainable steel manufacturing, and invited entrepreneurs to support the initiative for the benefit of Punjab’s economy.
VSSL Vice Chairman and Managing Director Sachit Jain added that the focus is on producing green steel by melting steel scrap using energy-efficient technologies and renewable energy, aligning with global sustainability practices and India’s net-zero goals. This approach will reduce reliance on fossil fuels and minimize the carbon footprint.
Jain highlighted that the project is a joint venture and technology transfer initiative with ASC, a global leader in special steel for automotive applications. ASC will provide technical expertise and continuous support, helping produce world-class clean steel. The plant will follow the Toyota Way layout to ensure operational excellence, safety, efficiency, and a world-class design.
The facility will employ state-of-the-art, energy-efficient technologies to boost competitiveness while reducing environmental impact. It will meet stringent global OEM standards, positioning Punjab as a hub for special steel exports and enhancing export potential.
The project is also expected to create a multiplier effect across ancillary industries, including forging units, logistics, and service sectors, boosting the overall industrial ecosystem in Punjab.
Secretary of Industries and Commerce, Kamal Kishor Yadav, was present at the press conference.