Why POSCO-JSW steel plant in Odisha CM's home district? Know all about the mega project

The highly-anticipated joint venture of JSW Group and South Korean steel giant POSCO is all set to set up a mega steel plant in Keonjhar, the home district of Chief Minister Mohan Charan Majhi. The two conglomerates have announced the establishment of an integrated steel plant with a production capacity of 5 million tonnes per annum (MTPA).

What If The Steel Plant Project Takes Off:

If the project takes off, this will be POSCO’s second attempt in Odisha after nearly two decades. Earlier in 2005, POSCO had tried to set up a 12 MTPA plant in the state with the highest amount of Foreign Direct Investment (FDI) in India.

Had everything gone well, a mega steel plant would have been established in the state. However, the dream project was shelved due to land acquisition hurdles. However, with the change of regime, the situation has changed drastically. Chief Minister Mohan Majhi recently cleared the air in this regard.

Also Read: MoU for new Steel Plant in Keonjhar to be inked soon: Odisha CM

Collaboration with JSW for the Mega Project:

Apart from land acquisition allegations, as per industrial experts, POSCO also did not have mines to run the steel plant. But, now JSW has four steel mines in the state that will cater to the need of the raw material of the proposed plant.

Moreover, the BJP-led Odisha government has also identified two places for establishing the plant in Keonjhar and it will be a win-win situation for the state.

Location for the Project:

Two patches of land have already been identified for the proposed project in the district. One patch, around 2,500 acres, is located near Odisha Tea Plantation Ltd (OTPL) at the Taramakant area under Banspal block, while another 1,956 acres is at Patna, which was initially offered to steel major ArcelorMittal.

Why CM Mohan Majhi’s home district Keonjhar?

Several people are also intrigued as to why POSCO chose Keonjhar for the mega steel plant. As per the industrial and economic experts, the maximum amount of iron ores is available in Keonjhar. Currently mining activities are going on in as many as 36 iron ore and manganese ore mines. Moreover, JSW has Jajang iron mine located in Joda.

Also Read: Why did POSCO decide to make comeback to Odisha & set up steel plant with JSW in Keonjhar?

Hence, considering these advantages, there is a great opportunity to set up the mega steel plant in the district. Moreover, a four-lane road connects Keonjhar to Paradip Port which will make it easy for transportation.

The government has also announced that the four-lane road will soon be expanded to eight-lane. On the other hand, the steel plant will provide employment opportunities to local people and boost economic development in the area and the entire state.

CM Mohan Majhi’s Message:

CM Mohan Majhi has revealed that the steel plant would make Odisha one of the major steel producers in the world.

“We conducted two roadshows in Delhi and Mumbai recently for inviting investors to the Utkarsh Odisha: Make-in-Odisha Conclave 2025 in January. I had discussed with both JSW Group and POSCO regarding a steel plant in the mineral-rich Keonjhar district. They had agreed and accordingly both the groups have signed an MoU to form a joint venture (JV),” the Chief Minister told reporters in Keonjhar.

Why is this Project Important? It is Claimed:

1.            The plant will boost Odisha's economy and employment.

2.            It will help India become a leader in sustainable steel production.

3.            It will encourage more investment in green industrial initiatives in India.

What are the benefits of the project?

1.            The plant will help Odisha gain global recognition.

2.            It will strengthen Odisha's industrial sector.

3.            It will help India achieve its sustainable development goals.

What are the advantages of the location?

1.            Keonjhar has a lot of iron ore and active mining activities.

2.            JSW already has an iron mine in Keonjhar's Joda.