JSW Steel Earmarks over Rs. 61,000 Cr. CapEx for Next 3 Years
Indian Steel giant, JSW Steel Ltd., has planned a massive CapEx amounting to Rs. 61,863 crore over the next 3 fiscal years.
Out of the total CapEx amount, Rs. 20,000 crore will be invested during FY26, Rs. 21,000 crore will be invested during FY27, and the remaining Rs. 20,863 crore will be utilised in FY28.
Expansion at Dolvi & Vijayanagar to Add 7 MMTPA Steel Production
JSW Steel will be adding a total of 7 Million Metric Tonne Per Annum of production capacity by September 2027. This addition will be done through ongoing expansion operations at its Dolvi and Vijayanagar plants.
Production at Dolvi being Expanded by 5 MMTPA by Sept. 2027
JSW Steel is in the process of expanding production capacity at its Dolvi facility in Maharashtra to 15 MMTPA from the current 10 MMTPA. This expansion has been termed as Dolvi Phase-III project by the company and is expected to be completed by September 2027.
This expansion includes installing 4.8 MMTPA blast furnace, Steel Melt Shop of 5 MMTPA and hybrid continuous strip mill that can produce plates and coils. This project also includes setting up of 250 MW captive power plant which will utilise the gases from blast furnace, thus reducing the overall power cost at Dolvi.
Vijayanagar Plant’s Capacity to be Expanded by 2 MMTPA by Q4 FY26
JSW Steel’s ongoing expansion plan at its Vijayanagar plant will add 2 MMTPA to its Steelmaking capacity. This expansion is expected to be completed in Q4 of FY26.
Expansion operations at Vijayanagar involve upgradation of Blast Furnace 3 (BF3) at the plant. This will increase the crude Steel capacity of BF3 to 4.5 MMTPA from the current 3 MMTPA. Therefore, 1.5 MMTPA of crude Steel production capacity will be added. For this purpose, BF3 at Vijayanagar will be shut from July 2025 onwards for a period of 150 days.
Apart from upgradation of BF3, the company will undertake debottlenecking exercises at Vijayanagar, which is expected to add another 0.5 MMTPA of Steelmaking capacity of the plant.
JSW Steel’s FY31 Target of 50 MMTPA Production Capacity
JSW Steel has set a target to achieve over 50 MMTPA of Steel production capacity by FY31. Currently, JSW Steel has a production capacity of 34.2 MMTPA.
Major Expansion Plans to Achieve FY31 Target
During the company’s FY25 earnings call, JSW Steel’s Joint MD & CEO, Mr. Jayant Acharya, shared that additional capacity expansion at Vijayanagar by 5 MMTPA (other than the expansion mentioned above), can be taken up “…once we see the Dolvi project progressing”.
Apart from this, the company is planning a 4 MMTPA Green Steel plant in Salav, Maharashtra. This will be a brownfield expansion, as the company currently operates a 0.9 MMTPA plant at Salav. This plant will be developed in phases by JSW Green Steel Ltd., a subsidiary of JSW Steel. Apart from this, JSW Steel will be establishing a 1 MMTPA Electric Arc Furnace (EAF) based Steel plant in Andhra Pradesh.
The company has not mentioned the exact timeline for the development of these plants; however, in its annual report for FY25, JSW Steel has described developing its Salav plant and EAF-based plant in Andhra as a part of its ‘near-term outlook’.
About JSW Steel Ltd.: JSW Steel Ltd. is the flagship company of the JSW Group. The company has manufacturing facilities in India and the US. In FY-25, the company reported a consolidated top line of Rs. 1,68,824 crore and a profit of Rs. 3,491 crore.
