-Vardhman Special Steels Limited and Aichi Steel Corporation, Japan, to Establish Plant in Ludhiana
-Over 1500 Direct Jobs and Significant Opportunities for MSMEs
-Project to Mark a Milestone in Punjab’s Industrial Growth
Chandigarh, August 28
In a major step toward transforming Punjab into a key industrial hub and promoting ease of doing business, Cabinet Minister Sanjeev Arora announced that Vardhman Special Steels Limited (VSSL), in collaboration with Aichi Steel Corporation (ASC), Japan, will establish a new Greenfield Special & Alloy Steel Plant in Ludhiana district. This initiative underscores Punjab’s commitment to creating a sustainable, technologically advanced, and globally competitive steel manufacturing facility.
Addressing the media, Sanjeev Arora revealed that the project involves a total investment of ₹2500 crore. The plant, with an installed capacity of 5 lakh tonnes per annum (TPA) of alloy and special steel, will cater to both domestic and global automotive demands. Utilizing the Electric Arc Furnace (EAF) route, the facility will ensure energy efficiency, reduced carbon emissions, and clean steel production.
Arora further disclosed that a solar power plant, with an investment of ₹500 crore, will be established alongside the steel plant to support operations with renewable energy. This ₹500 crore investment is in addition to the ₹2000 crore allocated for the Greenfield steel plant.
The project is expected to generate over 1500 direct jobs and create significant indirect employment and business opportunities for MSMEs, suppliers, and service providers across Punjab. Arora emphasized that this initiative will be a milestone in Punjab’s industrial growth, positioning the state as a leader in advanced and sustainable steel manufacturing. He sought the support of entrepreneurs to make this project a landmark success for Punjab’s economy.
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Sachit Jain, Vice Chairman and Managing Director of VSSL, elaborated that the plant will focus 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 vision. The collaboration with Aichi Steel Corporation, a global leader in special steel for automotive applications, will ensure technical expertise and world-class clean steel production. The plant will adopt the Toyota Way layout for operational excellence, safety, and efficiency.
Jain added that the project will incorporate state-of-the-art, energy-efficient technologies to enhance competitiveness while minimizing environmental impact. The facility will meet stringent global OEM standards, boosting Punjab’s export competitiveness in special steel. Additionally, the project will create a strong multiplier effect, benefiting ancillary industries, forging units, logistics, and service sectors, thus strengthening Punjab’s industrial ecosystem.
Secretary Industries and Commerce Kamal Kishor Yadav was also present at the press conference.
