Vardhman Special Steels (VSSL) will invest Rs 2,500 crore in a greenfield special and alloy steel plant in Ludhiana district, Punjab, in a joint venture with Japan’s Aichi Steel Corporation (ASC).

The announcement was made by VSSL Vice Chairman And Managing Director Sachit Jain alongside Industries And Commerce Minister Sanjeev Arora. With an installed capacity of five lakh tonne annually, the plant will cater to domestic and global automotive requirements, reflecting Punjab’s push for advanced, sustainable manufacturing.

Minister Arora said the project would be based on electric arc furnace technology, ensuring energy efficiency, lower carbon emissions, and clean steel production. It is expected to create 1,500 direct employment and significant indirect employment opportunities. MD Jain added that a separate Rs 500 crore solar power plant would be established to meet energy needs, over and above the Rs 2,000 crore earmarked for the steel plant. He emphasized the focus on producing “green steel” using scrap and renewable energy, aligned with India’s net zero vision. The facility will adopt the Toyota way layout to ensure safety, efficiency, and world-class standards.