Mumbai: Vraj Iron & Steel Ltd has approved a ₹450 crore greenfield integrated steel project in Chhattisgarh as part of its long-term capacity expansion strategy, with the first phase expected to be commissioned within 30 months of the project’s groundbreaking ceremony.
The company’s board, at its meeting held on Tuesday, also approved the takeover of land earmarked for the greenfield project from promoter and holding company Gopal Sponge and Power Pvt Ltd. The land is located at Village Chapka in Bastar district of Chhattisgarh. Environmental clearance granted by the Ministry of Environment, Forest and Climate Change (MoEFCC), along with other approvals and permissions obtained for the project, will be transferred to Vraj Iron & Steel.
The proposed first phase of the integrated steel plant will add an annual production capacity of 201,000 tonnes of sponge iron and 201,000 tonnes of MS billets. The project will also include a 15 MW waste heat recovery-based power plant and a 15 MW circulating fluidised bed combustion (CFBC) captive power plant.
The total investment for the first phase has been estimated at approximately ₹450 crore, inclusive of GST. Of this, around ₹150 crore will be funded through internal accruals and equity infusion, while the remaining ₹300 crore will be raised through debt.
The expansion will significantly increase the company’s manufacturing footprint. At present, Vraj Iron & Steel has an installed annual capacity of 235,500 tonnes of sponge iron, 210,600 tonnes of billets, and 54,000 tonnes of TMT bars. It also operates a 17 MW waste heat recovery-based power plant and a 15 MW solar power facility.
Based on annualised production for the April-June 2026 period, the company’s sponge iron plant is operating at 89.16% capacity utilisation, while billet production is running at 47%. Capacity utilisation stands at 67.16% for TMT bars, 62.63% for the waste heat recovery power plant, and 18.74% for the solar power plant.
The board said the investment decision followed a detailed assessment of the outlook for the domestic steel industry and Chhattisgarh’s industrial policy, particularly for the Bastar region, which offers fiscal incentives, exemptions and subsidies for industrial investments.
According to the company, the proposed project site offers strategic advantages, including proximity to iron ore reserves, lower transportation and logistics costs, and favourable long-term demand prospects for steel products.
The company said the expansion is intended to enhance manufacturing capacity, strengthen operational capabilities and support its long-term growth strategy in the steel sector, while improving its competitive position in the market.
Vraj Iron & Steel, which was listed in 2024, manufactures sponge iron, steel billets and TMT bars and operates integrated steel manufacturing facilities in Chhattisgarh. The proposed Bastar project will expand its upstream steelmaking capacity while strengthening its captive power infrastructure to support future growth.