Sachit Jain from Vardhman Special Steels Limited (VSSL) in collaboration with Aichi Steel Corporation (ASC), Japan to set up this Plant in Ludhiana district
Direct employment for over 1500 people along with significant indirect employment and business opportunities for MSMEs
This project will serve as a milestone in Punjab’s industrial growth
Chandigarh, 28 August 2025:
Aiming to make Punjab as a major industrial hub and paying the way for providing ease of doing business, Punjab Cabinet Minister Sh. Sanjeev Arora today informed that Vardhman Special Steels Limited (VSSL) in joint venture with Aichi Steel Corporation (ASC), Japan is setting up a new Greenfield Special & Alloy Steel Plant in Ludhiana district, Punjab. This project reflects our commitment to establish a sustainable, technologically advanced and globally competitive steel manufacturing facility in the state.
Speaking to the media about this project, Sanjeev Arora said that total investment for this project is ₹2500 crores. In this context, installed capacity of 5 Lakh Tonnes Per Annum (TPA) of Alloy & Special Steel is a Plant Capacity & Steelmaking will cater to both domestic and global automotive requirements. Production through the Electric Arc Furnace (EAF) route will ensure energy efficiency, reduced carbon emissions, and clean steel production.
He further informed that solar power plant will also be set up with an outlay of Rs. 500 crore capax. This plant is being set up in collaboration with our associated partner to ensure the use of renewable energy for plant operations. This investment of ₹500 Crore is over and above the estimated ₹2000 Crore Greenfield plant cost, he added.
It is worth mentioning here that this project will facilitate employment generation in Punjab. Direct employment for over 1500 people along with significant indirect employment and business opportunities for MSMEs, suppliers, and service providers across Punjab, he said.
Sanjeev Arora believed this project will serve as a milestone in Punjab’s industrial growth, reinforcing the state’s position as a leader in advanced and sustainable steel manufacturing. He also seeks the kind support and guidance of entrepreneurs to make this initiative a landmark success for Punjab’s economy and industry.
Sharing more details, Sachit Jain Vice Chairman and Managing Director of VSSL said that focus has been on producing green steel through melting of steel scrap by using energy efficient technologies and utilization of renewable energy which aligned with global sustainability practices and India’s net zero vision. It will reduce dependence on fossil fuels and minimize carbon footprint.
Sachit Jain said that this is a joint venture & technology transfer project. This plant will be set up in collaboration with Aichi Steel Corporation, Japan, a world leader in special steel for automotive applications. ASC will provide continuous support and technical expertise which will help in producing world-class clean steel. This plant will be developed on the Toyota way layout ensuring operational excellence, safety, efficiency and world class plant layout.
He further revealed that state-of-the-art technology will be used in this project. This project will incorporate the latest energy-efficient and productive technologies to enhance competitiveness while minimizing environmental footprint. This facility will be equipped to meet stringent global OEM standards, positioning Punjab as a hub for special steel exports leading to increased export competitiveness.
Furthermore, he said that the project will also generate a strong multiplier effect across ancillary industries, forging units, logistics, service sectors and provide a boost to the Industrial Ecosystem.
Secretary Industries and Commerce Kamal Kishor Yadav was also present during the press conference.
