India’s JSW Group will construct a steel mill dedicated to exports to the European Union (EU), adhering to its Carbon Border Adjustment Mechanism (CBAM) mandate, JSW Group chairman Sajjan Jindal said in a statement on Wednesday, April 16.
The plant will be located at Salav in Raigad, Maharashtra, and operate under JSW Steel Limited’s wholly-owned subsidiary JSW Green Steel, he said.
“The brownfield steel mill will have a capacity of 10 million mt per year and an investment to tune of $5.8-7.0 billion would be riding on the project,” Jindal said.
JSW Green Steel was incorporated in February last year to set up a 4 million mt per year integrated green steel plant as part of the steel major’s plan to reduce its carbon footprint.
The EU’s CBAM rules have been operational since 2023, though the full financial implications will come into effect from January 1, 2026. Under the CBAM, the EU will impose carbon-related tariffs on imports of carbon-intensive goods, including steel, cement and fertilisers.
The steel produced at JSW’s dedicated green steel plant will have one-fifth the carbon intensity of Indian steel currently, Jindal said.