AI Generated Summary
- With fresh capital flowing in and a gradual shift toward greener technologies, industry observers believe Punjab is poised to strengthen its status as a significant steel hub in the northern region, while supporting the broader manufacturing value chain that depends heavily on specialised steel products.
- A leading steel manufacturer has committed ₹1,500 crore for a facility in Rajpura, while another large domestic player has invested ₹2,600 crore in a Ludhiana unit.
- Punjab is rapidly strengthening its position as a major steel manufacturing centre in North India, attracting investments exceeding ₹5,400 crore over the past year.
Punjab is rapidly strengthening its position as a major steel manufacturing centre in North India, attracting investments exceeding ₹5,400 crore over the past year. Industry stakeholders say the surge reflects growing confidence in the state’s industrial ecosystem, supported by strong market access, policy incentives and rising demand for specialised steel products.
Two established industrial belts — Mandi Gobindgarh and Ludhiana — remain at the heart of the state’s steel expansion. Known for its dense concentration of furnaces and rolling mills, Mandi Gobindgarh hosts nearly 300 units and plays a significant role in India’s secondary steel production. Ludhiana, meanwhile, provides a strong consumption base through its thriving auto parts, textile, bicycle and hand tool industries, creating steady downstream demand for steel.
Several major companies have announced new projects or expansions, signalling long-term confidence in the sector. A leading steel manufacturer has committed ₹1,500 crore for a facility in Rajpura, while another large domestic player has invested ₹2,600 crore in a Ludhiana unit. Additional investments include a ₹342 crore expansion by a speciality steel producer and a ₹1,003.57 crore project planned at Jaspallon village by a private metals firm.
Industry representatives note that the sector is undergoing a technological and environmental transition. According to Mahinder Pal Gupta, president of the Furnace Association in Mandi Gobindgarh, manufacturers are increasingly shifting toward green and speciality steel production. Scrap-based manufacturing, in particular, is gaining traction as companies look to reduce emissions and rely more on recyclable metal inputs.
The state government attributes the momentum to a combination of policy support and changing global trends. Industry and Investment Promotion Minister Sanjeev Arora said rising demand for alloy, specialty and auto-grade steel has encouraged manufacturers to expand in Punjab’s engineering and automobile clusters. He added that competitive power tariffs — crucial for electric arc furnace operations — along with streamlined approvals through a single-window system, have made the state more attractive to investors.
Officials also point to the global push toward decarbonisation as a key factor shaping new investment decisions. Companies with coal-based integrated steel plants elsewhere in the country are exploring scrap-based production models in Punjab to align with sustainability goals.
With fresh capital flowing in and a gradual shift toward greener technologies, industry observers believe Punjab is poised to strengthen its status as a significant steel hub in the northern region, while supporting the broader manufacturing value chain that depends heavily on specialised steel products.
