ArcelorMittal Nippon Steel to Invest ₹60,000 Crore for Green Steel Expansion in India

ArcelorMittal Nippon Steel (AM/NS) India has announced a ₹60,000 crore Phase-I investment plan focused on expanding steel capacity, increasing renewable energy usage, and setting up additional scrap processing facilities.

The initiative is intended to align with the green steel taxonomy introduced by the Indian government in December 2024.

Capacity and Infrastructure Plans

AM/NS will expand production at its Hazira plant in Gujarat from 9 million tonnes per annum (MTPA) to 15 MTPA. 

It will also build three new scrap processing facilities across India, adding to its existing unit in Khopoli, Maharashtra. The company plans to increase the share of scrap-based input in production.

Government’s Green Steel Guidelines

As per the new taxonomy, steel products with less than 2.2 tonnes of CO₂ equivalent emissions per tonne of finished steel will be eligible for a star-based rating system. 

Steelmakers can qualify for a three-, four-, or five-star rating, with five being the lowest emissions category. The National Institute of Secondary Steel Technology (NISST) has been designated the nodal verification agency.

Target Output 

AM/NS India is targeting 70% of its output to qualify for a three-star rating by FY27. At present, 60-65% of the company’s steel is made through the gas-based direct reduced iron (DRI) process. The firm also plans to increase renewable energy usage through its hybrid energy project in Kurnool, Andhra Pradesh.

Scrap Supply Constraints

India’s domestic ferrous scrap production rose by 8% in FY25 to reach 32 million tonnes. However, the year also recorded a shortfall of 8.5 million tonnes. Reports suggest that Scrap demand is projected to reach 60-65 million tonnes by FY30, driven by steel demand growth. AM/NS is planning to scale up internal scrap processing to bridge part of the gap.

Conclusion

AM/NS India’s investment is structured around production growth, compliance with carbon emission norms, and securing raw material through scrap. The announcement comes shortly after JSW Steel declared its own investment plan of ₹50,000-60,000 crore for green steel production in Maharashtra.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.