JSW Steel's third phase of capacity expansion at its Dolvi plant will be one of the company's most cost-effective brownfield expansions, according to CEO Jayant Acharya. The company will invest just over ₹19,000 crore in this phase, focusing on meeting the demand for value-added special steel products. Acharya highlighted that the cost efficiency is due to existing infrastructure and equipment from the second phase.

This investment will increase JSW Steel's total capital expenditure to over ₹64,000 crore over three years. The expansion will add another 5 million tonnes of capacity at the Dolvi plant, raising its total capacity to 15 million tonnes per annum by September 2027. Nationwide, JSW Steel aims for a total production capacity of 42 million tonnes by then. The National Steel Policy 2017 envisions India's steel production capacity reaching 300 million tonnes by 2030-31.

JSW Steel's long-term goal is to reach a capacity of 50 million tonnes, with Tata Steel targeting 40 million tonnes. Acharya mentioned that in addition to the Dolvi expansion, JSW has brownfield options at Vijaynagar, BPSL, and Jharsuguda, providing leverage to exceed 50 million tonnes.

The cost of adding five million tonnes of capacity at Dolvi is around $460 per tonne, significantly lower than the global average of $700 per tonne. The company plans to finance this capital expenditure primarily through internal accruals.