JSW Group is moving forward with a major investment in a green steel facility in Salav, Raigad, Maharashtra, aimed at producing low-emission steel exclusively for export to the European Union. This initiative is part of the company’s strategy to meet the EU’s Carbon Border Adjustment Mechanism (CBAM) requirements. Operating under its subsidiary, JSW Green Steel, the project will begin with a capacity of 4 million tones per annum and gradually scale up to 10 MTPA. JSW Group Chairman Sajjan Jindal explained that the plant is central to the firm’s decarbonization efforts, given that CBAM will impose carbon tariffs on imports such as steel starting in 2026. He noted that steel from this facility will carry just one-fifth the carbon footprint of conventionally produced Indian steel.
With Indian steel production currently relying heavily on coal-based methods, the sector faces a significant tax hike of 20–35% under the new EU regulations due to higher emissions — 2.5 to 2.6 tones of CO₂ per tone of steel, compared to the global average of 1.85 tones. Jindal emphasized the urgency of safeguarding the domestic industry from unfair competition, particularly from Chinese steel producers who can afford to sell at minimal margins due to state ownership. He welcomed the government’s vigilance and noted that a safeguard duty against such imports is expected soon. For India to meet its growing steel demand — nearly 20 million tones annually — sustained investment of approximately $20 billion per year is needed, he added, underlining the importance of profitability and reinvestment in the sector’s expansion.
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