ESL Steel Ltd has entered into an agreement with Indian Oil Corporation Limited (IOCL) for the supply of Piped Natural Gas (PNG) to its steel plant in Bokaro, marking a significant move towards cleaner industrial energy. The agreement was formalised in the presence of senior leaders from both organisations, including IOCL Executive Director Manoj K. Sharma, General Manager Amiya Kumar Behera, ESL Steel Deputy CEO and WTD Ravish Sharma, and CFO Anand Dubey.

Welcoming the collaboration, Ravish Sharma said the transition from LPG to PNG represents a major step towards operational efficiency and sustainability. “By adopting PNG—a cleaner and more dependable fuel—we are strengthening our commitment to reliable operations and environmental stewardship,” he noted.

Under the agreement, PNG will replace LPG in selected operational processes at the Bokaro plant, providing a cleaner, safer and more reliable energy source. The partnership also reinforces broader cooperation between IOCL and ESL Steel on sustainable fuel solutions.

The initiative forms part of ESL Steel’s wider strategy to improve energy security, reduce emissions and enhance overall operational performance.

India’s steel exports to Europe are expected to decline once the European Union’s carbon tax comes into force next month, prompting domestic producers to look for alternative buyers in Africa and the Middle East, according to industry executives and analysts. From 1 January, steel imported into the European Economic Area will be subject to a levy under the EU’s Carbon Border Adjustment Mechanism (CBAM), which also covers cement, electricity, fertilisers and other emissions-intensive products.

India, the world’s second-largest crude steel producer after China, currently directs around two-thirds of its steel exports to Europe. Experts say the new regime will force Indian mills to accelerate emissions reduction. Former steel secretary Aruna Sharma said companies recognise the need for environmentally responsible production but are simultaneously scouting for new export markets.

Most Indian steel is produced using blast furnaces, which generate significantly higher emissions than electric arc furnaces. The Ministry of Steel’s top civil servant, Sandeep Poundrik, noted earlier that further blast furnace expansion is a concern. Global Energy Monitor estimates that upcoming capacity additions could increase sectoral emissions by roughly 680 million metric tonnes of carbon-dioxide equivalent.

Steady domestic demand—backed by infrastructure spending—has spurred Indian steelmakers to expand capacity. However, the new EU levy is expected to weigh on export volumes in the near term. “Most companies are still figuring out how to deal with CBAM,” said Ravi Sodah, analyst at Elara Capital. “It is expected to slow down India’s exports to the EU.”

Two senior executives at major steel firms said they had little clarity on how the tax would be calculated. One noted that with about 60 per cent of their exports heading to Europe, clarity on whether the tax would be uniform or company-specific was crucial.

According to CreditSights’ Lakshmanan R, the levy will increase the cost of Indian steel exports to Europe—particularly those produced via blast furnaces—compressing margins and eroding market share unless emissions fall. In response, producers are seeking to diversify their customer base, with mills targeting the Middle East through quick delivery commitments and flexible payment terms, said CRU Group principal analyst Shankhadeep Mukherjee.

JFE Steel Corporation of Japan will invest Rs 157.5 billion to form a joint venture with JSW Steel, according to a regulatory filing. The partnership will include the integrated steel plant of Bhushan Power & Steel Ltd (BPSL), a JSW Steel subsidiary, located in Odisha.

In its BSE filing, JSW Steel confirmed it has entered into a strategic 50:50 joint venture with JFE Steel. The steel business undertaking of BPSL will be transferred to the joint venture through a slump sale, with a cash consideration of Rs 244.83 billion. JFE will invest Rs 157.5 billion in two phases to acquire its half stake.

JSW Steel acquired BPSL in 2021 under the Insolvency and Bankruptcy Code process, transforming it from a distressed 2.75 million tonnes per annum unit into a profitable 4.5 million tonnes per annum operation. The plant currently employs around 25,000 people.

The transaction will enable JSW to monetise part of its holding in BPSL, supporting its broader growth strategy. The company said the partnership will combine JFE’s advanced technological capabilities with JSW Steel’s execution strength, enhancing value creation within the joint venture.

Jayant Acharya, Joint Managing Director and CEO of JSW Steel Ltd, said the collaboration brings together JSW’s expertise in India and JFE’s technological strengths, enabling the venture to scale and produce a wider range of value-added steels. JFE Steel’s President and CEO, Masayuki Hirose, added that the joint operation of an integrated steel plant in India will contribute to the growth of both companies and support the development of India’s steel industry.