JSW-POSCO Mega Steel Project: Odisha Begins Land Acquisition in Keonjhar
Keonjhar, Odisha — The Odisha government has initiated concrete steps to acquire land for the proposed mega steel plant, a joint venture between JSW Group and South Korean steel major POSCO. The move is seen as pivotal for ushering in large‐scale industrial growth in the mineral‐rich Keonjhar district.
Project Overview
The steel plant, with an initial production capacity of 5–6 million tonnes per annum (MTPA), is expected to be set up under a 50:50 partnership between JSW and POSCO. Estimated investment stands at over ₹40,000 crore. The plant will also explore complementary sectors such as battery materials for electric vehicles and renewable energy components for captive usage.
Land Identification & Scope
Two potential sites in Keonjhar have been identified for acquiring land:
- Taramakanta area under Banspal block: approximately 2,500 acres including land formerly used by Odisha Tea Plantations Limited (OTPL).
- Patna block: about 1,956 acres already earmarked earlier for a different steel project.
These land parcels comprise various categories: government‐owned land, private holdings, and some forest land. In Patna tehsil alone, ~2,466 acres across eight villages have been identified for acquisition. Of those, around 976 acres belong to the government and about 1,490 acres are private land. Approximately 794 acres are forest land; within this forest land, 60 acres are privately held.
One important point: authorities have planned carefully to avoid inhabited areas to limit displacement and social disruption, focusing primarily on agricultural and unused lands.
Status of Acquisition Process
According to Chief Minister Mohan Charan Majhi, the acquisition process is moving forward in multiple stages:
- The required funds for land acquisition have already been deposited by the company side.
- Notifications for acquiring private land are expected to be issued soon (some reports indicate by November) while government land acquisition is anticipated to be completed quicker.
- The environmental clearance application is being readied, with a submission expected by December.
To monitor and expedite the process, the Odisha government has formed a task force headed by Chief Secretary Manoj Ahuja.
Challenges and Lessons from the Past
The JSW‐POSCO venture marks a renewed attempt by POSCO to set up a major steel plant in Odisha. A previous POSCO project initiated in 2005 in Jagatsinghpur was abandoned in 2017, with land acquisition delays and related controversies being among the major obstacles.
Given this history, the present exercise appears to have incorporated lessons: identification of land patches early, government side ready with funds, clarity on type of lands (private, government, forest), and emphasis on avoiding inhabited areas.
Local Reactions & Impacts
Local residents in Keonjhar have expressed a mix of hope and caution. Many expect employment opportunities, improved infrastructure, and greater economic activity. As a primarily agrarian and tribal district, Keonjhar has until now lacked large‐scale industrialization; the proposed plant is therefore viewed as a potential game-changer.
On the other hand, being tribal and forest‐adjacent land, issues such as fair compensation, environmental protection, forest rights, and rehabilitation (if needed) are likely to become focal points of discussion and possibly dispute. While the government plans attempt to minimize displacement, the presence of forest land and private holdings means that careful negotiation and social safeguards will be essential.