Naveen Jindal Group Plans Rs 15,000 Crore Green Energy Investment

By siliconindia  |  Wednesday, 24 April 2024, 09:24:20 AM IST

Naveen Jindal Group Plans Rs 15,000 Crore Green Energy Investment
The Naveen Jindal group is in the final stages of planning a Rs 15,000 crore investment in renewable energy projects to power its expanding steelmaking operations. Sources familiar with the matter said that this investment aims to establish 4 gigawatts (GW) of in-house renewable power sources over the next couple of years. This would provide clean fuel for the group's steel capacity additions, helping to reduce carbon emissions and produce green steel.
Jindal Steel and Power, the listed entity promoted by Naveen Jindal, has announced a major capacity expansion to increase its steelmaking operations to around one and a half times the existing size by the end of the 2025-26 fiscal year. The plan involves developing solar and wind power projects, with sites identified and land acquisition currently underway. The bulk of the projects will be located in Rajasthan and Karnataka.
The renewable energy projects are being managed by Jindal Renewable Power Private Limited, a group company. According to sources, the group has started the process of acquiring machinery for the proposed projects and is in discussions with a close group of financiers.
The Naveen Jindal group is focused on investing primarily in India, according to its latest investor presentation. The company plans to continue investing in steel and ancillary businesses such as mines, ports, and power, while also focusing on green technologies to decarbonize its steel business. By 2025-26, the group aims to ramp up steelmaking capacity to about 15 million tonnes per annum from 9.6 million tonnes per annum in 2022-23.
Most of the additional capacity will be directed towards the production of hot rolled and cold rolled steel, which have wide applications in industries such as automotive and construction. India's highway construction projects, which encompass nearly 10,000 kilometers per year, require large quantities of steel for building guardrails.
The steel industry is known to contribute nearly 8% of global carbon emissions, much of which comes from the use of fossil fuel-based power sources. The Naveen Jindal group’s renewable energy projects aim to change this by shifting to green steel production.
This strategy aligns with a broader industry trend, as other major steel firms such as Tata Steel and ArcelorMittal Nippon Steel have also announced plans to set up captive green power projects to reduce carbon emissions in their steelmaking processes.
The group's commitment to renewable energy projects showcases its dedication to sustainability and environmental, social, and governance (ESG) compliance, meeting growing investor demand for industrial companies to focus on reducing carbon emissions. By investing in green technologies, the Naveen Jindal group is positioning itself at the forefront of a cleaner and more sustainable future for the steel industry in India.

ON THE DECK

siliconindia