Punjab is set to witness one of its most significant industrial investments as Vardhman Special Steels Limited (VSSL), in collaboration with Japan’s Aichi Steel Corporation (ASC), announced plans to establish a ₹2,500 crore Greenfield Special Steel and Alloy Steel Plant in Ludhiana. The project was unveiled by Punjab Cabinet Minister Sanjeev Arora, who described it as a milestone in the state’s industrial journey and a step towards making Punjab a hub for sustainable, globally competitive steel manufacturing.
The Ludhiana facility will have an installed capacity of five lakh tonnes per annum of alloy and special steel, aimed primarily at serving both domestic and international automotive industries. A major highlight of the project is the adoption of the Electric Arc Furnace route, a technology known for energy efficiency, lower carbon emissions, and the ability to recycle scrap steel into high-quality products. This ensures that the plant not only boosts industrial capacity but also contributes to India’s larger goal of sustainable development and clean manufacturing.
A dedicated solar power plant worth ₹500 crore will also be set up to supply renewable energy for the steel plant’s operations. This marks a strong commitment to reducing the carbon footprint of the facility while aligning with India’s long-term net-zero emissions vision. With this investment, the Ludhiana plant is expected to be one of the country’s pioneering projects in the “green steel” category, combining industrial growth with environmental responsibility.
The collaboration with Japan’s Aichi Steel Corporation brings in international expertise and advanced technology. ASC, a part of the Toyota Group and a global leader in special steels for the automotive sector, will provide continuous support and technical know-how. According to Sachit Jain, Vice Chairman and Managing Director of VSSL, the plant will follow the Toyota Way layout to ensure operational excellence, safety, and efficiency. This partnership is expected to strengthen Punjab’s competitiveness in global auto supply chains and enhance India’s positioning in high-quality steel exports.
Beyond its industrial and environmental impact, the project is expected to generate substantial employment opportunities. More than 1,500 direct jobs will be created, while thousands of indirect opportunities will open up for MSMEs, suppliers, forging units, logistics providers, and service industries across Punjab. This ripple effect is expected to boost the local economy and create new avenues for growth in related sectors.
Cabinet Minister Sanjeev Arora emphasized that the plant will not only serve as an engine of industrial growth but also reinforce Punjab’s role as a leader in sustainable manufacturing. He highlighted the multiplier effect that such a project will have on ancillary industries and the state’s overall economic ecosystem.
The announcement has come at a time when India is focusing heavily on renewable energy adoption and industrial modernization. By integrating a large solar power unit and sustainable steelmaking processes, the Ludhiana Greenfield project stands as a model for how future industries can be built. The combination of Japanese technical expertise, Indian industrial capacity, and a commitment to sustainability makes this project a landmark not just for Punjab but for India’s broader industrial ambitions.
The ₹2,500 crore Greenfield Special Steel Plant in Ludhiana, therefore, is much more than a new factory. It is a symbol of transformation, bringing together clean technology, global partnerships, job creation, and export potential. As the plant comes to life, it is expected to set new benchmarks in sustainable steel production and contribute to Punjab’s emergence as a global player in advanced manufacturing.
