Bhubaneswar: More than two decades after South Korean steel giant POSCO abandoned its ambitious mega steel project in Odisha due to local protests, the company is making a strong comeback to the state.
In a significant development, POSCO has entered into a 50:50 joint venture with JSW Steel to set up a greenfield integrated steel plant in Odisha. The agreement was signed on Monday during the India-Korea Business Summit in New Delhi. Additional Chief Secretary (Industries), Hemant Sharma, confirmed the development while addressing reporters. “We are very happy to announce that POSCO is returning to Odisha. An agreement in this regard was signed on Monday during the South Korean President’s visit to India,” he said.
The proposed project in Dhenkanal district will have an initial capacity of 6 million tonnes per annum (MTPA) of integrated steel production. The total investment is estimated at around Rs 35,000 crore, with both JSW Steel and POSCO holding equal stakes. The joint venture will be executed through Saffron Resources Private Limited, a subsidiary of JSW Steel. The deal is expected to be completed by the end of 2026.
In the early 2000s, POSCO had planned to establish a massive 12 MTPA steel plant near Paradip in Jagatsinghpur district with an investment of over Rs 51,000 crore. However, the project faced stiff resistance from local communities during land acquisition and could not secure necessary raw material linkages following changes in the country’s mineral policy. The plan was eventually shelved.
The new project is expected to create substantial direct and indirect employment opportunities and give a major push to the economic development of the region, particularly in Dhenkanal. State government officials have assured full support, including logistics and additional land if required. The state already has around 1,000 acres available, though a larger parcel (typically 2,500–3,000 acres for a 6 MTPA plant) may be arranged. Some reports also indicate parallel site evaluations in mineral-rich Keonjhar district.
The agreement was signed in the presence of senior leaders, including JSW Group Chairman Sajjan Jindal and POSCO representatives, and marks a new chapter in India-South Korea industrial cooperation.
This partnership combines JSW’s strong execution capabilities in India with POSCO’s advanced technology in high-grade steel production, expected to cater to sectors like automotive and others.
