Sumitomo, Bajaj JV to Invest ₹2,345 Crore in Karnataka Steel Plant; NGEF Revival on Agenda

In a significant boost to Karnataka’s industrial landscape, a ₹2,345 crore steel manufacturing plant is set to come up in Koppal district by 2028. The project, confirmed by Japanese giant Sumitomo in partnership with the Bajaj Group through their joint venture Mukand Sumi, will have an annual production capacity of 3,50,000 tonnes of iron and steel.

Karnataka Minister for Large and Medium Industries, M.B. Patil, who is currently leading a high-level delegation to Japan, announced the investment. He highlighted that the project would not only strengthen the state’s steel production capacity but also generate large-scale employment and create downstream opportunities for local industries.

The Minister also revealed that discussions were held with senior officials of Japanese company JFE Shoji regarding the revival of the prestigious New Government Electrical Factory (NGEF) in Hubballi. Once a key name in India’s electrical equipment manufacturing sector, NGEF has remained dormant for years. Reviving this facility under state partnership could position Hubballi as a hub for advanced electrical and power converter technology. JFE officials have been invited to visit the Hubballi unit for preliminary discussions.

In addition to the steel project and NGEF revival talks, Sumitomo has expressed interest in setting up a biomass energy unit in Karnataka. Further, JFE Shoji has assured that a separate ₹400 crore project to manufacture motor cores for battery-powered and electric vehicles will soon be implemented.

Another key investor, Yaskawa, has confirmed plans to establish a motion control and variable frequency drives manufacturing unit in Bengaluru. According to Minister Patil, this investment will further cement Karnataka’s reputation as a hub for advanced manufacturing and future-ready technologies.

The state delegation, including Principal Secretary Selvakumar S. and Industries Commissioner Gunjan Krishna, continues to engage with Japanese companies to attract long-term investments. These developments highlight Karnataka’s growing appeal as a global manufacturing destination and its proactive approach in reviving legacy industries while fostering new-age technology sectors.