JSW, POSCO Plan Mega Steel Plant in Odisha
On August 18, 2025, the two companies signed a Heads of Agreement (HoA)—a non-binding preliminary pact—to jointly explore establishing a steel plant with a production capacity of 6 million tonnes per annum (MTPA). They plan to structure this as a 50:50 joint venture, combining JSW’s execution strength and domestic experience with POSCO’s advanced technology.
This HoA builds on an earlier Memorandum of Understanding (MoU) signed in October 2024, where a 5 MTPA plant in Odisha and collaboration in battery materials for electric vehicles and renewable energy were first proposed.
Why Odisha?
Odisha stands out for several reasons:
- It is rich in mineral resources, particularly iron ore.
- Good logistical infrastructure supports transportation of raw materials and finished goods.
- Local authorities, including Chief Minister Mohan Charan Majhi, have played a role in steering the project to Keonjhar district, a mineral-rich area known for its potential.
Investment Scope and Next Steps
While the exact investment figures for the new 6 MTPA project are not yet public, earlier reporting suggested that the preliminary 5 MTPA plant carried an investment estimate of approximately ₹65,000 crore (~$7.4 billion).
Both JSW and POSCO now intend to conduct a detailed feasibility study, which will cover:
- Finalizing the plant location
- Structuring investment commitments
- Tackling resource availability and logistics
- Securing necessary regulatory and environmental approvals
Leadership Comments
- Jayant Acharya, Joint MD and CEO of JSW Steel, said the venture blends JSW’s strong domestic execution with POSCO’s steel-making technology. The aim is to create a globally competitive manufacturing hub catering to both Indian and international markets.
- Lee Ju-tae, President of POSCO Holdings, emphasized that India is central to future global steel demand, and this collaboration reflects a long-term vision and mutual trust.
Broader Significance
- The partnership underscores India’s “Atmanirbhar Bharat” (self-reliant India) vision, aligning with national goals to strengthen domestic manufacturing and reduce reliance on imports.
- If completed, this would be a major industrial boost for Odisha, bringing jobs, infrastructure, and economic growth to the region.
- For POSCO, it marks a renewed attempt to establish a presence in Odisha, after the company previously shelved a $12-billion steel project due to land acquisition hurdles.
What’s Next?
- Conduct the feasibility study to decide the precise site and terms.
- Seek approvals from state and central authorities.
- Finalize the joint venture structure and investment schedule.
- If feasible, move toward construction and eventual production.
- The project will likely provide local employment and strengthen Odisha’s role in India’s industrial future.