JSW and POSCO to establish mega steel plant in Keonjhar, informs CM Mohan Majhi

The joint venture of JSW Group and South Korean steel giant POSCO will establish a mega steel plant in Keonjhar, informed Chief Minister Mohan Majhi during the visit to his home district on Friday.

CM Majhi further informed that he had discussed with both JSW and POSCO in this regard during the Make in Odisha road shows in Delhi and Mumbai and both companies have already signed an MoU. 

According to CM Majhi, both companies have mentioned establishing the mega steel plant in Keonjhar and it will be definitely set up in the district.

“I have already told about the steel plant. I have discussed the matter with JSW and POSCO during the road shows under Utkarsh Odisha – Make in Odisha in Delhi and Mumbai. Both companies have also signed an MoU among them and they have mentioned setting up the plant in Keonjhar in a joint venture. The steel plant will definitely be set up in Odisha,” said CM Majhi.

It has been learnt that the two conglomerates will establish an integrated steel plant with a production capacity of five million tonnes per annum (MTPA).

Notably, POSCO had signed an MoU with the previous government in 2005 to set up a mega steel plant in Odisha with an investment of Rs 52,000 crore. However, the company left Odisha in 2017 following controversy over land acquisition and some other issues.

“It’s a very good news for Odisha. We welcome it wholeheartedly from UCCI. Following the withdrawal of POSCO in 2017 from the state, a question mark was raised over the investment ecosystem and Foreign Direct Investment (FDI) in Odisha. The MoU between JSW and POSCO will have a positive impact on the industrial ecosystem of Odisha and more FDIs will come to Odisha. It will also help in the economic development of Keonjhar district and the state as a whole,” said Utkal Chamber Of Commerce & Industry (UCCI) president Prabodh Mohanty.

As per sources, two places have been identified in the mineral-rich Keonjhar district for the mega plant. One is a patch of 1956 acres of land in Patna block which was earlier provided to ArcelorMittal to set up a steel plant there and the second one is a patch of 2500 acres of land in Taramakanta area under Banspal block in the district. As per reports, the tea garden, set up at Taramakanta by Odisha Tea Plantations Limited (OTPL), is no longer producing tea and the land is currently owned by the State government.

A high-level team from both companies will reportedly visit both places to choose one to set up the mega steel plant there. 

As per the MoU signed between both companies, the initial production capacity of the plant will be five million tonnes per annum (MTPA) and it may be increased gradually. The exact amount of investment in the mega plant will be announced in the upcoming Utkarsh Odisha conclave in January 2025.

Meanwhile, the residents of the district have expressed their pleasure over the development.

“Residents in the area are dependent on farming. People of the area will be greatly benefitted if the mega steel plant will be set up in our area,” said Kshetrabasi Rana, a resident of Banspal.

“This is a tribal area full of mines and minerals. If the plant is set up in our area, the residents will get employment opportunities and other facilities as well. Moreover, the economy of Odisha will also prosper,” said Ramachandra Behera, a resident of Taramakanta.