JSW Steel and Posco Eye Odisha for 6 MTPA Steel Plant
Joint venture to strengthen India–South Korea collaboration in steel sector
Bhubaneswar: Odisha has emerged as one of the leading contenders for a proposed 6 million tonnes per annum (MTPA) integrated steel plant that Indian steel major JSW Steel and South Korea’s Posco Group are planning to set up. The announcement was made on Monday after the two companies signed a non-binding heads of agreement (HoA) to jointly explore the establishment of the project.
According to a joint release, the agreement marks a significant milestone in deepening strategic collaboration between two of the world’s most respected steel producers. As the next step, both companies will carry out a detailed feasibility study to decide the final location. “Given its natural resource base and logistical advantages, Odisha is among the key locations being considered,” the release stated.
The two firms will also finalise investment terms, assess resource availability, and address other critical factors before moving forward.
This latest agreement builds on the memorandum of understanding (MoU) signed by JSW Steel and Posco in October 2024. The HoA outlines the broad framework for the proposed 50:50 joint venture, with both sides committing to leverage their respective strengths.
The agreement was signed in Mumbai in the presence of Lee Ju-tae, representative director and president of Posco Holdings, and Jayant Acharya, joint managing director and CEO of JSW Steel.
The partnership is expected to combine JSW’s execution capabilities and extensive domestic presence with Posco’s global technological expertise in steel-making.
Speaking on the occasion, JSW Steel’s Jayant Acharya highlighted that the project aligns closely with the Government of India’s Atmanirbhar Bharat initiative. “This collaboration will contribute to establishing a globally competitive manufacturing hub in India, catering to both domestic needs and export markets,” he said.
Lee Ju-tae of Posco emphasised the importance of India in the global steel demand landscape. He pointed out that the partnership is built on mutual trust and a shared long-term vision, adding that Posco is committed to supporting India’s industrial growth and creating lasting value for both organisations.
JSW Steel, the flagship company of the $23 billion JSW Group, is currently India’s leading integrated steel producer with a consolidated capacity of 35.7 MTPA, including 1.5 MTPA in the United States. The company is already on track to increase its capacity to 43.4 MTPA within the next three years.
Posco, on the other hand, is a global leader with an annual crude steel production capacity of around 42 million tonnes. Its integrated steelworks at Pohang and Gwangyang in South Korea form the backbone of its global production network, supplying high-quality steel products to industries worldwide.
The development also revives Odisha’s past association with Posco. Back in 2005, the South Korean steelmaker had announced plans to invest around \$12 billion in a 12 MTPA steel plant in Jagatsinghpur district. That project, billed as India’s largest foreign direct investment (FDI) initiative at the time, was eventually shelved in 2017 following local opposition, land acquisition challenges, and changing global market conditions.
The new proposal, though smaller in scale, comes with renewed optimism and a different approach. If finalised, the joint venture could mark a fresh chapter in Odisha’s industrial development and significantly strengthen India–South Korea economic ties.
