Rs 100000 crore-plus investments set to shape Odisha as the steel capital of India by 2031

Odisha is on the cusp of a significant industrial transformation, fueled by cumulative investments exceeding Rs 1 lakh crore in its rapidly expanding steel sector, expected to firmly establish Odisha as the undisputed steel capital of India by 2031.

The state's vision extends beyond mere production volume as it aims for a position of dominance in both the domestic and international steel markets, supported by large-scale industrial expansion, critical infrastructure development, strategic global partnerships, and a strong emphasis on sustainable manufacturing practices.

The Foundation: Rich Resources, Strategic Vision, and Policy Drivers

Odisha's inherent advantage lies in its vast reserves of iron ore and coal, the fundamental raw materials for steel production. The state government has proactively capitalised on these resources, implementing investor-friendly policies to attract major players from both India and abroad and facilitate rapid industrial growth.

As highlighted at the India Steel 2025 Conference, where Odisha's Chief Minister Mohan Charan Majhi actively invited global steel manufacturers to invest, the state's well-established industrial infrastructure and rich iron ore reserves were emphasised as key attractions.

As of April 2025, Odisha boasts 54 integrated steel plants with a combined installed capacity of 41.21 million tonnes per annum (MTPA). The ambitious target to dramatically increase this capacity to 130 MTPA by 2030 is a core component of the state's growth plan.

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Mega Investments Driving Capacity Expansion

The bedrock of Odisha's steel revolution is the substantial investment directed towards establishing new mega steel plants and significantly expanding existing facilities.

Projects with a collective value exceeding Rs 1 lakh crore are currently in various stages of planning and execution, demonstrating the immense scale of this transformation:

JSW Steel’s Expansion: JSW Steel is making a monumental investment exceeding Rs 50,000 crore. A key element is the development of a new 13 MTPA integrated steel plant in Paradip. 

Jindal Steel and Power (JSPL), Angul: JSPL is undertaking a substantial Rs 20,000 crore expansion project at its Angul facility. Currently operating at 6 MTPA, the plant aims to reach an impressive 25 MTPA by 2030 as part of JSPL's expansion plan.

Tata Steel’s Kalinganagar Expansion: Tata Steel is investing approximately Rs 10,000 crore in expanding its Kalinganagar plant. Having already expanded beyond its initial 3 MTPA capacity, the plant is targeting a capacity of 8 MTPA.

POSCO & JSW Mega Steel Plant, Keonjhar: A landmark development, announced with the signing of Memorandum of Understanding (MoUs) between JSW Steel, South Korea’s POSCO, and the Odisha government, is the planned mega integrated steel plant in Keonjhar. 

With an estimated investment ranging between Rs 30,000-40,000 crore and a targeted capacity of 12-15 MTPA, and is projected to create over 30,000 direct and indirect jobs, benefiting local communities.

ArcelorMittal Nippon Steel India (AM/NS India), Kendrapara: A substantial planned investment is being made by AM/NS India to establish a massive 24 MTPA plant in Kendrapara.

These large-scale projects form the fundamental pillars of Odisha's growth strategy, ensuring a substantial increase in production capacity and attracting further global investment interest, reinforcing the state's industrial supremacy.

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Ensuring Raw Material Security: Strategic Mining and Logistics

Odisha is proactively addressing this through strategic mineral auctions and integrated logistics planning. As part of its mineral auction strategy, eight major mineral blocks with a combined iron ore resource of 323 million tonnes were successfully auctioned in 2025.

The state has further plans to auction 22 additional mineral blocks by March 2026, as outlined in the raw material security plans.

Economic and Employment Impact

The rapid expansion of the steel industry is expected to have a profound positive impact on Odisha's economy. The growth is projected to generate over 500,000 direct and indirect jobs across various sectors by 2030.

Odisha is rapidly asserting its dominance and outpacing other traditional steel-producing states in India, which currently stands as the second-largest steel producer globally.

Meanwhile, the state is becoming increasingly capable of competing effectively with global giants such as China (the steel giant), Japan (known for high-tech steel), and South Korea (a growing steel power with advanced automotive steel production) in terms of production volume, cost-efficiency, and export capabilities, cementing its place on the global industrial map and establishing its reputation as a national steel powerhouse.