Bhubaneswar: A major boost to Odisha’s industrial landscape is on the horizon as JSW Steel and South Korea’s POSCO Group, two global steel giants, have signed a non-binding Heads of Agreement (HoA) to jointly explore the development of a 6 million tonnes per annum (MTPA) integrated steel plant.
The announcement has been met with optimism by financial analysts and business leaders of the State.
Rajib Sekhar Sahoo, Chairman of the Indian Chamber of Commerce (ICC), Odisha, lauded the agreement, stating it would significantly “go a long way in improving the economic and industrial scene in this Eastern State.”
Shri Sahoo said, the project, if it comes to fruition in Odisha, is anticipated to generate substantial employment and stimulate growth in ancillary industries, reinforcing the state’s position as a key player in the national economy.
The agreement, which builds upon a Memorandum of Understanding (MoU) signed in October 2024, sets the stage for a proposed 50:50 joint venture aimed at leveraging JSW’s domestic expertise and POSCO’s cutting-edge technology.
The HoA was signed in Mumbai by Mr. Jayant Acharya, Joint Managing Director & CEO of JSW Steel, and Mr. Lee Ju-tae, Representative Director and President of POSCO Holdings.
A detailed feasibility study will now be conducted to finalize critical project details, including the location and investment structure.
The state of Odisha has been identified as a strong contender for the site, thanks to its abundant natural resources and strategic logistical advantages.
The project aligns with the industrialization push of the new state government, with Chief Minister Mohan Charan Majhi having actively championed a mega steel complex in the mineral-rich Keonjhar region.
Shri Majhi had previously announced that land acquisition for a steel plant in Keonjhar would begin soon, following the deposit of necessary funds by the company, signaling the state’s readiness to facilitate such a large-scale venture.
The proposed steel plant is expected to create a globally competitive manufacturing hub, serving both domestic and international markets and contributing to India’s “Atmanirbhar Bharat” (Self-Reliant India) vision.