In a major boost to Punjab’s industrial landscape, Vardhman Special Steels Limited (VSSL), in partnership with Japan’s Aichi Steel Corporation (ASC), announced the establishment of a state-of-the-art Greenfield Special Steel and Alloy Steel Plant in Ludhiana district with a capital investment of ₹2,500 crore.
The project, unveiled on Thursday by Punjab Cabinet Minister Sanjeev Arora, includes a dedicated solar power facility worth ₹500 crore, underscoring a strong emphasis on renewable energy and sustainable manufacturing.
The new plant will have an installed capacity of 5 lakh tonnes per annum (TPA) of alloy and special steel, catering to domestic and international automotive industries. Adopting the Electric Arc Furnace (EAF) route, the facility aims to enhance energy efficiency, cut carbon emissions, and produce clean steel.
“This project will generate over 1,500 direct jobs and create substantial opportunities for MSMEs, suppliers, and service providers across Punjab. It marks a milestone in Punjab’s industrial journey and reinforces our state’s position as a hub for advanced and sustainable steel manufacturing,” said Minister Arora.
Sachit Jain, Vice Chairman and Managing Director of VSSL, highlighted the venture’s focus on producing “green steel” by recycling steel scrap with energy-efficient technologies aligned to global sustainability goals and India’s net-zero targets.
“The joint venture with ASC, a world leader in automotive special steels, will ensure world-class clean steel production with continuous technical support and knowledge transfer,” Jain said. He added that the project would follow the Toyota Way layout to ensure operational excellence, safety, and efficiency, while adhering to stringent global OEM standards.
Officials said the project is expected to significantly boost Punjab’s export competitiveness in special steel, while creating a strong multiplier effect across ancillary industries, forging units, logistics, and services.
Secretary Industries and Commerce Kamal Kishor Yadav was also present at the press conference.