JSW and POSCO to Build Mega Steel Plant in Keonjhar, Odisha
In a significant development for the Indian steel industry, JSW Group has teamed up with POSCO, a South Korean steel giant, to establish a state-of-the-art steel plant in Keonjhar district, Odisha. The project, which will involve a substantial investment ranging from Rs 30,000 crore to Rs 40,000 crore, was announced by Sajjan Jindal, Chairman of JSW Group, during the Utkarsh Odisha, Make in Odisha Conclave held in Bhubaneswar on January 28, 2025. This mega steel plant is expected to play a pivotal role in the region’s industrial landscape, enhancing Odisha's position as a hub for steel production.
The Vision Behind the Steel Plant
JSW Group’s collaboration with POSCO marks a significant milestone in the company’s commitment to furthering its footprint in the steel industry, particularly in Odisha. The state, known for its rich mineral reserves, has always been a prime location for steel manufacturing, making it an ideal spot for JSW's strategic expansion.
The steel plant, with a capacity of 12 million metric tons per annum, is expected to have a transformative impact on the local economy. The project is set to bring significant employment opportunities to the region, along with the development of related industries and infrastructure. The two companies aim to leverage the mineral wealth of the region to create a sustainable, large-scale steel production facility that will cater to both domestic and international markets.
JSW’s Broader Investment Plans in Odisha
JSW Group is not stopping at this joint venture. Sajjan Jindal revealed that the company is planning a total investment of around Rs 1 lakh crore in Odisha’s industrial sector over the next five years. This will include not only the joint venture steel plant with POSCO but also other capacity expansions and infrastructure development initiatives in the state.
One of the key ongoing projects is a steel plant in Paradip with a production capacity of 12 million metric tons per annum, which is progressing as planned. Additionally, JSW is expanding its existing plant at Jharsuguda, further solidifying the company’s commitment to increasing its steel manufacturing capacity in India.
Land Identification and Project Location
The state government of Odisha has identified two potential sites for the proposed steel plant. The first is approximately 2,500 acres of land located near the Odisha Tea Plantation Ltd at Taramakant, situated in the Banspal block. The second site covers 1,956 acres near Patna, which was initially offered to ArcelorMittal but has since been earmarked for this high-profile project. These land parcels are strategically located to ensure easy access to the required raw materials and transportation routes, further strengthening the project’s viability.
The Role of POSCO in the Project
POSCO, one of the world’s largest steel manufacturers, has a long history in the Indian market and has already made significant investments in Odisha. With extensive experience in the state’s steel sector, POSCO’s involvement in this joint venture brings a wealth of expertise in steel production, technology, and sustainable manufacturing practices. The collaboration with JSW is expected to combine the strengths of both companies, driving technological innovation and operational excellence.
Government Support and Progress
The Odisha government has shown strong support for this project, recognizing the positive economic impact it will have on the region. Chief Minister Mohan Charan Majhi has confirmed that the state government is fully backing the joint venture, and surveys of the land identified for the plant have already been completed. A high-level team of officials will soon visit the sites to finalize the location of the steel plant.
The government’s proactive approach and willingness to work closely with JSW and POSCO will ensure that the project progresses smoothly, benefiting the local community with job creation and infrastructure development while contributing to India’s industrial growth.
