JSW Group and POSCO to establish mega steel plant in Odisha’s Keonjhar

Bhubaneswar: In a significant development for India’s steel industry, the JSW Group, in collaboration with South Korean steel giant POSCO, has announced plans to set up a mega integrated steel plant in Keonjhar, Odisha.

The joint venture will have an impressive production capacity of 5 million tonnes per annum (MTPA). This strategic move was unveiled during a recent announcement in Mumbai, highlighting the commitment of both conglomerates to bolster the Indian steel sector.

Odisha’s Chief Minister, Mohan Charan Majhi, confirmed the development during his tour of Keonjhar, stating that discussions with JSW and POSCO took place during the Utkarsh Odisha roadshow programs held in Delhi and Mumbai. “Now, JSW and POSCO have concluded a Memorandum of Understanding (MoU), and the plant will be established in Keonjhar. The process is underway,” he stated, responding to inquiries about the much-anticipated steel plant.

Project Details and Land Acquisition

The agreement between JSW and POSCO comes after extensive preliminary discussions and high-level meetings, including an investors’ meet led by the Chief Minister. Two potential sites for the plant have already been identified within Keonjhar district. The first site spans approximately 2,500 acres near the Odisha Tea Plantation Ltd (OTPL) in the Taramakant area under the Banspal block. The second site, covering about 1,956 acres, is located in Patna and was previously offered to the steel major ArcelorMittal.

POSCO’s Return to Odisha

This venture marks POSCO’s second attempt to establish a presence in Odisha after its previous endeavor, which began in 2005. The earlier plan to set up a 12 MTPA plant was abandoned due to land acquisition challenges. With this new partnership, POSCO is poised to strengthen its foothold in India, particularly after recently signing a $5 billion agreement with the Adani Group for an integrated steel mill in Mundra, Gujarat.

JSW Group’s Expansion in Odisha

For JSW Group, this joint venture signifies a strategic expansion in the state. Earlier this year, the group laid the foundation stone for a separate 13.2 MTPA integrated steel manufacturing complex in Paradip, with a substantial investment of ₹65,000 crore. This latest project in Keonjhar further cements JSW’s commitment to enhancing its production capabilities in Odisha.