Chandigarh (Punjab) [India] August 28 (ANI): In a major boost to Punjab's industrial growth, Punjab Cabinet Minister Sanjeev Arora on Thursday announced that Vardhman Special Steels Limited (VSSL), in collaboration with Japan's Aichi Steel Corporation (ASC), is set to establish a state-of-the-art Greenfield Special Steel and Alloy Steel Plant in Ludhiana district with a total capital expenditure of 2,500 crore.

The project includes a dedicated solar power plant worth 500 crore, reflecting a strong focus on renewable energy and sustainable industrial practices.

Announcing the project at a press conference, Cabinet Minister Arora said the facility will have an installed capacity of 5 lakh tonnes per annum (TPA) of alloy and special steel, catering to both domestic and international automotive industries. The plant will adopt the Electric Arc Furnace (EAF) route, ensuring energy efficiency, lower carbon emissions, and the production of clean steel.

'This project will generate direct employment for over 1,500 people and create substantial indirect opportunities for MSMEs, suppliers, and service providers across Punjab. It will serve as a milestone in Punjab's industrial journey and reinforce our state's position as a hub for advanced and sustainable steel manufacturing,' said Arora.

Highlighting the sustainability component, he added that the 500 crore solar plant will ensure renewable power for plant operations, further reducing the facility's carbon footprint.

Sachit Jain, Vice Chairman and Managing Director of VSSL, emphasized that the focus will be on producing 'green steel' by recycling steel scrap using energy-efficient technologies aligned with global sustainability practices and India's net-zero vision.

'This joint venture and technology transfer project with Aichi Steel Corporation (ASC), a world leader in automotive special steels, will ensure world-class clean steel production. ASC will provide continuous support and technical expertise,' Jain said.

Jain further added that the project will be developed on the Toyota Way layout, ensuring operational excellence, safety, and efficiency, while incorporating state-of-the-art technology to meet stringent global OEM standards. The plant is expected to boost Punjab's export competitiveness in special steel and create a strong multiplier effect across ancillary industries, forging units, logistics, and service sectors.

Secretary Industries and Commerce Kamal Kishor Yadav was also present at the press conference. (ANI)