JSW Steel has announced the transfer of its sponge iron unit in Salav, Raigad, Maharashtra, to its wholly-owned subsidiary JSW Green Steel, according to disclosures filed with stock exchanges on Tuesday.

Green Steel Expansion Plan JSW Green Steel was incorporated in February 2023 to establish a 4 million tonne per annum (MTPA) integrated green steel plant as part of JSW’s strategy to lower its carbon footprint. The transfer will allow the company to scale up operations, expanding the existing 0.9 MTPA capacity to 4 MTPA in phases.

The transaction, set to be initiated on Wednesday, is expected to be completed by March 31. The transfer will take place through either a cash transaction or the issuance of equity shares/convertible equity instruments by JSW Green Steel to JSW Steel, amounting to Rs 2,233 crore.

Focus on Low-Carbon Steel Production JSW Steel has positioned the green steel facility to cater to export markets, focusing on producing steel with low carbon emissions. The company aims to track CO? emissions separately and explore green hydrogen technology for its direct reduced iron (DRI) or sponge iron operations.

The move aligns with JSW Steel’s broader strategy to adopt sustainable steel manufacturing practices, reducing reliance on traditional carbon-intensive methods while enhancing its global competitiveness.

Keywords: JSW Steel, JSW Green Steel, sponge iron unit, Maharashtra steel plant, green steel expansion, low-carbon steel, direct reduced iron, green hydrogen, steel plant investment.