Vulcan Steel seeks $2.5B for Oman project talks

28 Jun 2023 CW Team

As per the aforementioned sources, it was stated that the funding for the plant's construction will exclusively come from non-bank sources. In an earlier interview, a senior executive from the group mentioned that the company plans to invest over $3 billion into the project, which is based in Duqm.

The ECAs will play a role in financing the procurement of capital goods for the plant, which will predominantly be imported from overseas into Oman. Typically, ECAs provide funding for purchases made by foreign buyers from their respective home countries, thus supporting export activities.

The plant, anticipated to be operational by 2027, is expected to have a manufacturing capacity of 5 million tonnes per year. It will be a part of Jindal Shadeed Iron and Steel LLC, a company that Vulcan Steel acquired in 2020.

The project has been undertaken with a focus on the European steel markets, as the continent has a preference for lower emission raw materials in order to achieve its decarbonisation objectives. Vulcan Steel sees potential in the demand for green steel, as it is considered a leading solution for manufacturing companies to reduce their carbon footprint.

Green steel possesses the same properties as conventional steel but is produced without the use of fossil fuels, resulting in a minimal carbon footprint. Currently, it is not available on an industrial scale.

Companies worldwide, particularly in developed nations, are racing to develop the necessary technology and produce green steel on a large scale. H2 Green Steel, a Swedish firm, is set to become the first major green steel manufacturer once their plant, currently under construction, becomes operational by 2025.

Vulcan Steel acquired Jindal Shadeed Iron and Steel LLC from JSPL for an enterprise value of $1 billion. In 2020, JSPL made the decision to divest from the asset as part of its strategy to reduce debt and focus on its core steel business in India. JSPL held a 99.9% stake in the Oman asset, which it purchased for $464 million in 2010.

Also read:
Shree Cement plans Rs 60 billion investment for capacity
Crisil: Cement prices may decrease 1-3% despite strong

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

According to two individuals familiar with the matter, it was reported that Vulcan Steel, a company owned by industrialist Naveen Jindal, is currently engaged in discussions with export credit agencies (ECAs) from multiple countries to secure $2.5 billion in funding for their upcoming green steel plant in Oman. As per the aforementioned sources, it was stated that the funding for the plant's construction will exclusively come from non-bank sources. In an earlier interview, a senior executive from the group mentioned that the company plans to invest over $3 billion into the project, which is based in Duqm. The ECAs will play a role in financing the procurement of capital goods for the plant, which will predominantly be imported from overseas into Oman. Typically, ECAs provide funding for purchases made by foreign buyers from their respective home countries, thus supporting export activities. The plant, anticipated to be operational by 2027, is expected to have a manufacturing capacity of 5 million tonnes per year. It will be a part of Jindal Shadeed Iron and Steel LLC, a company that Vulcan Steel acquired in 2020. The project has been undertaken with a focus on the European steel markets, as the continent has a preference for lower emission raw materials in order to achieve its decarbonisation objectives. Vulcan Steel sees potential in the demand for green steel, as it is considered a leading solution for manufacturing companies to reduce their carbon footprint. Green steel possesses the same properties as conventional steel but is produced without the use of fossil fuels, resulting in a minimal carbon footprint. Currently, it is not available on an industrial scale. Companies worldwide, particularly in developed nations, are racing to develop the necessary technology and produce green steel on a large scale. H2 Green Steel, a Swedish firm, is set to become the first major green steel manufacturer once their plant, currently under construction, becomes operational by 2025. Vulcan Steel acquired Jindal Shadeed Iron and Steel LLC from JSPL for an enterprise value of $1 billion. In 2020, JSPL made the decision to divest from the asset as part of its strategy to reduce debt and focus on its core steel business in India. JSPL held a 99.9% stake in the Oman asset, which it purchased for $464 million in 2010. Also read: Shree Cement plans Rs 60 billion investment for capacity Crisil: Cement prices may decrease 1-3% despite strong

Resources

26 Jun 2026

G R Infraprojects Founder Vinod Agarwal Passes Away

Vinod Kumar Agarwal, Founder and Promoter of G R Infraprojects, has passed away. He had been associated with the company since its inception in 1995. His vision, determination and entrepreneurial acumen laid the foundation for the company and helped shape its growth into a leading name in India’s infrastructure sector.Agarwal served as Managing Director from 2008 to 2021 and later as Chairman and Whole-time Director from 2021 to 2025. He stepped down from the office of Director on 10 November 2025. During his leadership tenure, the company moved through significant phases of growth, operatio..

Infrastructure Energy

25 Jun 2026

Centre Prioritising Energy Security With Coal Gasification

Union minister for Coal and Mines G Kishan Reddy said the Centre is prioritising energy security through a strategic shift to coal gasification and has announced incentives totalling Rs 460 billion (bn) to support the effort. He said more than 35 companies will start coal gasification activities in India within two months and that the government is encouraging firms that bring technology to close the domestic technology gap. The minister described the initiative as aimed at reducing import dependence and developing indigenous capacity. India has the fifth-largest coal reserve in the world, and..

Infrastructure Urban

25 Jun 2026

BHEL and Coal India Invest Rs 250 bn in Odisha Gasification

Bharat Heavy Electricals (BHEL) and Coal India (CIL) are jointly investing Rs 250 billion in a coal gasification project in Odisha, with the Prime Minister laying the foundation stone in Jharsuguda. Union Coal and Mines Minister G Kishan Reddy described the initiative as a transformative shift in coal utilisation that will open industrial avenues for the state. The project moves coal beyond conventional power generation to industrial feedstocks. Coal gasification will convert coal into synthesis gas, a versatile feedstock for chemicals, fertilisers and synthetic fuels, and the technology is ex..