JSW Steel, POSCO eye Odisha to set up 6 MTPA steel plant

Odisha is emerging as a frontrunner for a proposed mega steel project, with Indian major JSW Steel and South Korea’s POSCO Group signing a non-binding Heads of Agreement (HoA) to jointly explore setting up a 6 million tonnes per annum (MTPA) integrated steel plant in India.

The companies have indicated that Odisha is among the prime locations being considered, given its abundant mineral resources, coal linkages, and port connectivity. A detailed feasibility study will determine the exact site, investment framework, and resource availability, stated a statement released by JSW Steel on Monday.

According to reports by The Hindu, the project is being envisaged as a 50:50 joint venture, combining JSW’s execution capabilities and strong domestic footprint with POSCO’s technological expertise in advanced steelmaking.

Company representatives have stated that the venture aligns with India’s Atmanirbhar Bharat vision and could position the state as a globally competitive steel manufacturing hub catering to both domestic and international markets.

Revival of POSCO’s Odisha Connect

For Odisha, the development revives memories of POSCO’s earlier USD 12 billion proposal to establish a 12 MTPA plant in Jagatsinghpur district.

Once projected as India’s largest FDI project, it was shelved in 2017 due to land acquisition challenges, local resistance, and global market shifts. The fresh pact with JSW, however, marks a renewed attempt to tap into the state’s potential as a steelmaking powerhouse.

Strategic Significance

The HoA, signed in Mumbai on Monday, builds on a memorandum of understanding between JSW and POSCO in October 2024.

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If finalised, the Odisha facility would add significantly to JSW Steel’s existing 35.7 MTPA capacity, which is projected to rise to 43.4 MTPA within three years. POSCO, with annual crude steel production of around 42 million tonnes and global operations spanning multiple continents, brings extensive technological and operational strength to the partnership.