Japan’s JFE Engineering to buy 25% stake in Antony Waste Handling's Andhra waste-to-energy projects

Mumbai: Municipal solid waste management company, Antony Waste Handling Cell Ltd, will partner with Japan’s JFE Engineering Corporation to develop two waste-to-energy (WtE) plants in Andhra Pradesh, marking the first Japanese foreign direct investment (FDI) in India’s WtE sector.

As part of the arrangement, JFE Engineering will invest about ¥750 million (Rs 43 crore) to acquire a 25% equity stake in special purpose vehicles (SPVs) set up for the projects, while Antony Waste will retain the remaining 75%. JFE Engineering India will also serve as the engineering, procurement, and construction (EPC) contractor for both facilities, the companies told ET.

The investment will be directed towards projects in Kadapa and Kurnool, structured as project-level partnerships aimed at long-term execution and value creation.

The deal is being positioned as part of the broader India–Japan collaboration on sustainable infrastructure, aligned with the India–Japan Joint Vision 2025, which targets significant Japanese investments across priority sectors.

“This investment marks a defining moment for India’s waste-to-energy sector. It validates our execution capabilities, governance standards, and long-term vision,” said Jose Jacob, chairman and managing director of Antony Waste Handling Cell Ltd. “Partnering with JFE Engineering allows us to combine global technology leadership with local expertise to build scalable and environmentally responsible infrastructure.”

Akira Usui, director of recycling business promotion at JFE Engineering, said the investment reflects the company’s confidence in India’s WtE opportunity and Antony Waste’s execution capabilities. “As our first investment in India’s waste sector, it underscores our long-term commitment to bringing advanced technology and engineering excellence to support sustainable infrastructure development,” he added.

Each of the two plants is expected to process around 750 tonnes of municipal solid waste per day, with an overall waste inflow capacity of about 1,000 tonnes per day per facility. The projects are designed to generate roughly 15 MW of power each, taking the combined capacity to around 30 MW.

The plants will operate under a 20-year concession, with a power purchase agreement tariff of ₹8.10 per unit. Total project revenue is estimated at approximately ₹3,200 crore, with financing structured at 75% debt and 25% equity.

Construction is expected to be completed within 24 months, with commissioning targeted in the first quarter of FY2028–29.

India generates nearly 150,000 tonnes of municipal solid waste daily, but has utilised less than 5% of its estimated 5,600 MW waste-to-energy potential, indicating significant headroom for growth.

With global experience spanning over 250 WtE facilities, JFE Engineering is expected to bring advanced technologies, digital monitoring systems, and environmental standards to the projects, while also supporting operations and capacity building.

The partnership comes amid growing policy support and increasing adoption of public-private partnership models in the sector, as India looks to scale sustainable waste management solutions and energy recovery infrastructure.