Odisha to host Rs 15,750 crore JSW Steel-JFE joint venture steel plant; 10 mtpa output targeted

JSW Steel Ltd. has finalised a Rs 15,750-crore joint venture with Japan-based JFE Steel, creating a new 50:50 entity that will house Bhushan Power and Steel Ltd.’s integrated steel plant in Odisha.

The agreement, disclosed through an exchange filing on Wednesday, marks one of the largest collaborative investments in the domestic steel sector in recent years.

Odisha Plant to Anchor New 50:50 JV

Under the arrangement, as reported by NDTV, the BPSL facility, currently owned by Piombino Steel Ltd., will be transferred to the newly formed joint company. Piombino Steel is controlled predominantly by JSW Steel, which holds 82.65%, with the remainder owned by JSW Shipping & Logistics Pvt. Ltd.

The new partnership is designed to lift crude steel output at the Odisha complex to 10 million tonnes annually by 2030. The planned expansion is positioned as a core driver for the group’s long-term production and technology roadmap.

JSW Steel indicated that proceeds from the transaction will strengthen its balance sheet and provide additional liquidity for upcoming expansion commitments.

Odisha at the Centre of JSW Steel’s Expansion Map

The latest JV comes at a time when JSW Steel has been deepening its engagement with Odisha. Earlier this year, the company and South Korea’s POSCO Group signed a non-binding Heads of Agreement to study the feasibility of setting up a 6-million-tonne integrated steel plant in India, with Odisha identified as one of the primary locations under consideration.

The proposed project, still subject to detailed assessment, would combine JSW’s domestic manufacturing footprint with POSCO’s advanced steelmaking technologies. Company statements at the time noted that factors such as mineral availability, coal linkages and access to ports made Odisha an attractive candidate for large-scale investments.

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POSCO’s Renewed Link to Odisha

For Odisha, the exploratory pact with POSCO rekindled memories of the South Korean major’s earlier attempt to establish a 12-million-tonne plant in Jagatsinghpur. That proposal, once billed as India’s largest FDI project, was discontinued in 2017 following land acquisition hurdles and market shifts.

The new collaboration with JSW has been viewed as a potential pathway to restore the state’s position as a high-capacity steel manufacturing hub, subject to successful completion of feasibility assessments.