The projected investment under this expansion is about INR 500 crore.
Punjab CM Secures INR 500 Crore Investment Boost from Japan as Aichi Steel Expands Collaboration
Punjab CM Bhagwant Singh Mann, on the third day of his Japan visit, secured an investment of approximately INR 500 crore for the state. Japanese steel major Aichi Steel agreed to expand its collaboration with Ludhiana-based Vardhman Special Steels.
In the presence of the CM, Aichi Steel and Vardhman Special Steels formally signed a Memorandum of Understanding (MoU). It is a major step in deepening industrial cooperation between Japan and Punjab.
Aichi Steel already has a 24.9 per cent stake in Vardhman. It will now study future factory operations in Punjab, including a feasibility assessment for establishing new manufacturing facilities. The projected investment under this expansion is about INR 500 crore.
Mann described the agreement as “a red-letter day for the state” and said that this pact highlights Aichi Steel’s confidence in Punjab’s industrial potential and strengthens the emerging Indo-Japan industrial partnership. He gave an assurance of full support from the Punjab government to facilitate the expansion project. He further added that the joint effort of Aichi’s technological strength and Vardhman’s manufacturing capacity could significantly contribute to the industrial growth of the state.
Mann also invited Aichi Steel’s top leadership for participation in the upcoming Progressive Punjab Investors' Summit 2026, which will be held from 13 to 15 March 2026 at the Indian School of Business, Mohali. He said that the focus of the summit is Punjab’s growth trajectory, showcasing investment opportunities, and encouraging deeper global industrial engagement.
Mann also emphasised that supporting existing Japanese businesses, creating a stable, investor-friendly environment, and accelerating industrial development for the benefit of youth employment and economic growth are high priorities of the state.
The agreement with Aichi Steel represents a strategic move towards Punjab’s industrial ambitions: it signals renewed foreign commitment, reinforces Punjab’s place in global supply chains, and could boost further industrial investment ahead of the 2026 investors’ summit. According to CM, the deal is a landmark milestone for the state’s economic future.
Source: The Tribune
