Tracking Technology in the Indian Steel Sector

This is the third report in our series analysing the state and outlook for Indian steel majors in their ambition to expand capacity while meeting decarbonisation goals. Following our reports on JSW Steel and Tata Steel, this edition focuses on Jindal Steel and Power Ltd (JSPL). 

JSPL has set a net zero emissions target for 2047, 23 years ahead of India’s national goal. Its current crude steel capacity is 9.6 Mtpa, but it plans to nearly quadruple this by 2035, with a combined 38 Mtpa across its Angul and Raigarh sites. Most of this expansion will rely on conventional blast furnace technology. 

JSPL’s current strategy poses a significant risk of carbon lock-in. 

This report finds:  

  1. Misalignment between short-term targets and recent performance 
    • JSPL has pledged to cut carbon intensity from 2.6 tCO₂/tcs to 2.0 tCO₂/tcs by 2030, yet its emissions intensity has increased to 2.81 tCO₂/tcs in FY24/25, making its 2030 target increasingly difficult to achieve. 
  2. Risk of carbon lock-in from capital allocation 
    • JSPL’s portfolio includes US$30 bn planned investment in ongoing and future projects, with 79% of capital expenditure aligned to high-risk, carbon-intensive technologies, including four new blast furnaces at Angul and Raigarh. 
  3. Geographical constraints could limit decarbonisation options
    •  JSPL is exploring Carbon Capture and Utilisation (CCU) as part of its emissions reduction strategy. JSPL’s sites are located in eastern India, far from viable geological carbon sinks, making Carbon Capture and Storage (CCS) deployment on blast furnaces unlikely.
  4. EU exposure limits future export potential
    • JSPL’s EU exports (approximately 5% of total revenue) are exposed to CBAM tariffs. While it is unclear whether the company plans to prioritise the EU as a destination for its planned capacity expansion, CBAM-related costs could limit its access to this market, as well as to green steel premiums, unless low-CO₂ capacity is developed.
  5. Emerging pathways for lower-carbon steel 
    • The company leads in coal-based shaft Direct Reduction (DR) furnaces. Additionally, the company’s plans to expand DR-EAF capacity at Raigarh and to source renewable electricity through virtual Power Purchase Agreements (vPPAs) could support a lower-emissions growth pathway over the medium to long term.