Why POSCO Decided To Make Odisha Comeback & Set Up Mega Steel Plant With JSW In Keonjhar

Leading South Korean steel giant POSCO will be collaborating with the JSW group to set up a mega steel plant in Odisha’s Keonjhar. Chief Minister Mohan Majhi himself cleared the air in this regard on his visit to the district.

But, did you know that…this is not the first time that POSCO will be entering into business with Odisha. In 2005, POSCO had signed an agreement with the State government to establish a 12-million tonne per annum steel plant in Jagatsinghpur district with the highest amount of Foreign Direct Investment in India. But, things did not go as planned. Land acquisition issues became the hurdle that led POSCO to withdraw its very first project in Odisha in 2017. You can see the 12 years time range, from 2005 to 2017, POSCO fought a hard battle but failed.

Now, speculation is rife on why POSCO decided to set up the steel plant in the State in a joint venture with JSW though the company had withdrawn earlier. 

As per experts, the steel plant was not possible in Jagatsinghpur due to massive protests by the locals. Moreover, POSCO did not have any mines to run the steel plant. However, the situation has changed significantly and is now in favor of POSCO. Let's list down those significant changes.

The Odisha government has identified two potential locations for establishing the plant in Keonjhar. The experts committee from South Korea as well as the JSW group will visit the district and finalise one of the two locations. 

Next, POSCO is collaborating with JSW Group for this mega project. JSW already has four steel mines in the State which are all set to cater for the need for raw material of the proposed plant. This makes one of the possible reasons why POSCO decided to set up a plant in a joint venture with JSW.

So, a possible question arises as to why POSCO chose Keonjhar. Well, because till now, not a single mega industry has been set up in Keonjhar and as per experts, the maximum amount of iron ores is available in Keonjhar as well as active mining activities. Moreover, JSW has a Jajang iron mine located in Keonjhar’s Joda. So, these stand as advantages for POSCO. 

POSCO returning to the state at a time when Odisha is speedily developing is certainly a cherry on top. This shall boost Odisha’s employment, give the state greater than before global recognition, amplify the economy and make Odisha stand even stronger and mightier in the industrial sector.