₹1.26 lakh crore
Approved capital expenditure
pipeline over the next 4–5 years
Strategic growth with
efficient capital allocation
Mr. Jayant Acharya
Joint Managing Director and CEO
“Our capital investment programme reflects a disciplined long-term approach to building scale, strengthening integration and creating competitive advantage. Every investment is guided by a clear focus on growth, deepening our value-added product portfolio, securing critical raw materials and advancing our low emission steel ambitions.
Backed by a robust execution pipeline, we continue to invest with confidence while maintaining cost competitiveness and operational resilience. From landmark greenfield and brownfield expansions to downstream capabilities, infrastructure enhancement and sustainability-led initiatives, we are shaping a stronger and more integrated steel ecosystem for the future. These investments are designed not only to support growth, but to reinforce agility, unlock efficiencies and create longterm value.
As we progress towards achieving 78 MTPA steelmaking capacity, including JVs, in India by 2031-32, we remain focused on leading with purpose, consistency and a determination to redefine possibilities.”
Material issues addressed
- Economic performance
- Climate change and emissions management
- Vendor management and development
- Energy management
- Water resource use and management
- Investment in clean technology
Our focus on strategic growth is driven by a commitment to expand our capacities and capabilities while deploying capital efficiently to optimise efficiency, drive product innovation and ensure business sustainability. This comprehensive approach enables us to serve the diverse needs of our customers and is key to our global competitiveness.
Capacity target by FY 2031-32#
Current crude steel capacity
CAPEX PROGRAMME
Our capital investment programme reflects a disciplined, long-horizon commitment to building scale, deepening the value-added product portfolio and strengthening raw material security. In FY 2025-26, we incurred a capital expenditure of ₹15,595 crore with planned investment of ₹22,000–24,000 crore in FY 2026–27. These investments are anchored within a Board-approved capex pipeline of ₹1,26,161 crore to be deployed over the next four to five years.
The overarching objective is to achieve 78 MTPA steelmaking capacity in India by FY 2031-32 (including capacities under JV of ~16 MTPA) while expanding downstream capabilities, securing raw material linkages and advancing our Company's green steel ambitions.
A defining milestones of the year was the Board approval for a 5 MTPA greenfield Steel Plant at Paradip (Utkal Phase 1) with an investment of ₹31,600 crore and a 5 MTPA brownfield expansion at JVML, Vijayanagar at an investment of ₹26,000 crore. Upon commissioning by FY 2029-30, Vijayanagar's total steelmaking capacity will reach approximately 25 MTPA, positioning it as the largest single location steel manufacturing facility in the world.
Focus on growth, value addition and cost savings
CAPITAL ALLOCATION OVERVIEW
The capital expenditure programme is guided by five key priorities:
- Capacity expansion
- Downstream value-added facilities
- Raw material security
- Cost reduction initiatives
- Sustenance and maintenance capex
A key competitive advantage underpinning the programme is the specific investment cost of approximately $550–600 per tonne - well below the global average of $800–1,000, enabling superior returns on invested capital.
-
Capex carried forward as on
1st April 2026 (including Creditors and Acceptances)* -
Steelmaking: JVML Phase-2 capacity expansion of
5 MTPA - Sustenance capex
-
Total approved
capex pipeline
Capital expenditure allocation by category (%)
PROJECT-WISE KEY OPERATIONAL UPDATES
The Vijayanagar complex continues to be a cornerstone of our Company’s growth strategy with multiple expansion and value-addition initiatives progressing in parallel.
- Expansion of Blast Furnace-3 (BF-3) to 4.5 MTPA currently under testing and commissioning.
- Capacity expansion of 5 MTPA at its wholly owned subsidiary JSW Vijayanagar Metallics announced; project expected to be completed by FY 2029-30.
- Development of a 0.55 MTPA CRNO plant, with equipment ordering completed and commissioning targeted by March 2028.
- Installation of a 0.4 MTPA Continuous Galvanising Line (CGL) for highstrength automotive steel, targeted for June 2028.
- Completion of the fourth coke oven battery, marking the completion of the coke oven project.
Logistics and infrastructure at Vijayanagar are being upgraded in parallel to support future volume growth. Rail infrastructure is being aligned to handle annual throughput of 100 million tonnes. Investments in owned infrastructure and fleet expansion are designed to improve dispatch turnaround time (TAT) and optimise logistics costs. Cross-functional quality initiatives further reinforce supply chain reliability and service excellence for both internal and external customers.
At Dolvi, our Company is advancing both expansion and sustainability-focused initiatives. Progress on the Phase-III capacity expansion at Dolvi from 10 MTPA to 15 MTPA remained on track during FY 2025–26. Long lead-time equipment has been ordered and Letters of Credit established with project completion targeted by September 2027. Civil construction and equipment erection are actively underway.
- MEROS-based waste gas recirculation and bag filter system at Sinter Plant 2 significantly reduced coke consumption and stack emissions.
- Installation of BF-2 dehumidifier systems.
- CDQ refractory revamp and Phase 2 refractory store and BFG injection system in the CDQ boiler.
- Enhanced operational efficiency, waste heat utilisation, thermal performance and power stability across operations.
These initiatives are collectively enhancing operational efficiency, environmental performance and energy utilisation.
BHUSHAN POWER AND STEEL LIMITED
The strategic joint venture with JFE Steel, Japan's leading integrated steelmaker marks a significant step in our product quality and technology advancement agenda. The assets of BPSL have been transferred to the joint venture entity on a slump sale basis with all corresponding pending capital expenditure commitments simultaneously transferred to the JV entity. This structure ensures a clean transition and full alignment of future investments within the JV framework.
Odisha remains central to JSW Steel's raw material strategy.
- Combined Environmental clearance (EC) capacity of iron ore mines stands at 19.2 MTPA, with plans to expand to 31.2 MTPA by FY 2026–27. Operations are supported by integrated crushing and screening facilities.
- During Q3 FY 2025-26, the EC capacity of the Narayanposhi Mines was enhanced from 6 MTPA to 10 MTPA, alongside the commissioning of an integrated CPU (Crushing and Processing Unit) facility.
- To further improve resource utilisation, development of a 35 MTPA beneficiation plant to improve utilisation of low-grade ore into blast furnace-grade input.
- 30 MTPA slurry pipeline (302 km) being set up by JSW Infrastructure Limited, progressing well towards commissioning in FY 2027-28.
- JSW Utkal greenfield project (Odisha): The Utkal plant will be a
cornerstone of JSW Steel's long-term capacity and value chain strategy.
- Pellet plants (2 × 8 MTPA) targeted by FY 2027-28.
- Integrated steel capacity including 5 MTPA Blast Furnace, 6 MTPA SMS and 6 MTPA HSM targeted by FY 2029-30.
- 1 MTPA structural mill is underway targeted at structural steel products for the infrastructure and construction segments.
- Equipment procurement is in progress, with commissioning targeted by FY 2028-29.
JSW STEEL COATED PRODUCTS
Across coated product facilities, our Company undertook multiple efficiency, energy optimisation and infrastructure enhancement initiatives:
Vasind: CGL#2 Inverted-U PHF furnace commissioned.
Tarapur: New leveller and seam welder installed.
Kalmeshwar: Manufacturing Execution System (MES) and energy-efficient compressors deployed.
Khopoli: ARP overhauling and storage enhancement works completed.
Bawal: 132 KV substation commissioned; furnace refractory revamped.
Dhar: Upgraded quality control infrastructure with advanced testing equipment.
Rajpura: Energy-efficient boiler systems commissioned.
Pulwama: Storage, spares and utility infrastructure enhanced.
Khopoli:
0.86 MTPA CGL
(includes Zero Spangle line)
Equipment ordered; commissioning targeted Q1 FY 2027–28.
Rajpura:
0.36 MTPA CGL
Equipment ordering in progress; commissioning targeted FY 2027–28.
These initiatives are aimed at improving product mix, quality consistency and operational reliability.
GREEN STEEL INITIATIVE
JSW Green Steel Limited (Salav)
As part of our decarbonisation roadmap, we have undertaken structural steps to build a dedicated green steel platform:
- Transfer of the Salav DRI unit (0.9 MTPA) to JSW Green Steel Limited
- Planned expansion to 4 MTPA capacity in phases.
- Focus on low-carbon steel production.
This initiative supports export markets with low-emission steel and aligns with evolving global sustainability standards.
Andhra Pradesh (Kadapa)
A greenfield EAF facility aligned with our Company's green steel strategy, enabling scrap-based steelmaking.
- Establishment of a 1 MTPA Electric Arc Furnace (EAF) and structural mill.
- Equipment ordering in progress, with commissioning targeted by FY 2028-29.
Our Company’s capital expenditure programme reflects a well-balanced strategy combining scale expansion, value addition, sustainability and cost efficiency. With strong execution capabilities and a robust project pipeline, we are well-positioned to deliver sustained growth while maintaining cost competitiveness and operational resilience.
Near-term
- Completion of BF-3 upgradation at Vijayanagar which is under testing and commissioning.
- Progression of Dolvi Phase-III expansion - 5 MTPA taking overall capacity to 15 MTPA (targeted commissioning by September 2027).
- Progression of JVML Phase-II expansion - 5 MTPA taking overall capacity to 10 MTPA (targeted commissioning by FY 2029-30).
- Progression of JSW Utkal Phase-I expansion - 5 MTPA (targeted commissioning by FY 2029-30).
- Development of Kadapa EAF facility – 1 MTPA (targeted commissioning by FY 2028-29).
- Operationalisation of domestic iron ore mines and coking coal mines.
- Develop Mozambique coking coal mine, with the first phase targeted by mid CY2028.
- Continued exploration of value-accretive acquisition opportunities in India to enhance our domestic capacity and operational synergies.
Long-term
- Achieve 78 MTPA steelmaking capacity in India by FY 2031-32 (including capacities under Joint Venture ~16 MTPA).
- Strengthen domestic market leadership aligned with India’s National Steel Mission.
- Target 50% captive iron ore and coking coal at enhanced levels of operations.
- Target >50% value added and special products mix at enhanced levels of operations.