Vardhman Special Steels (VSSL) is planning to establish a 5,00,000 tpa billet production along with a rolling mill and testing facilities in Punjab.

The project estimated to cost around Rs 2,000 crore will be funded through mix of internal accruals, equity and debt. The new capacity is expected to be commissioned by FY30.

"I am happy to announce our long awaited capex plan of setting up a new green field steel plant in the State of Punjab for manufacturing of special and alloy steel. The proposed capacity addition is 5,00,000 MT of billet production with commensurate Rolling Mill & testing facilities. The total Capex required for this would be around Rs. 2000 crore, which will be funded through a mix of internal accruals, equity and debt. With this green field plant we will be able to address the expected capacity shortage post-2028. This will support future demand, meet evolving quality standards, align with trends like Green Steel, and help reduce manufacturing costs," said Sachit Jain, Vice Chairman & Managing Director of Vardhman Special Steels Ltd.

The company expects the new facility to be commissioned by FY 2029-30. According to VSSL, the plant will address anticipated capacity shortages after 2028, help meet higher quality standards required by OEMs, reduce overall steel manufacturing costs, and enable diversification into new product segments such as wire rods, forging, and the non-automotive sector.