JSW Steel and Japan’s JFE Steel will jointly invest Rs 5,845 crore to expand cold rolled grain-oriented (CRGO) electrical steel production across two plants in India to meet rising domestic demand.

Both partners will contribute Rs 1,966 crore each through equity for the expansion, with capacity expected to come online in phases from FY28. At the Nashik plant, JSW–JFE Electrical Steel will boost output to 2.5 lakh tonne per annum (TPA) from 50,000 TPA, backed by Rs 4,300 crore investment. An additional Rs 1,545 crore will be invested to raise the capacity of the upcoming Vijayanagar facility to one lakh TPA from the planned 62,000 TPA.

The JSW, JFE Nashik facility was acquired in January from Germany’s Thyssenkrupp for Rs 4,159 crore. JSW Steel said the expansion will strengthen India’s self-reliance in high-grade electrical steel, supporting energy infrastructure and renewable energy growth.  CRGO steel, primarily used in energy applications such as transformers, is prized for its energy efficiency and role in reducing carbon emissions.