BHUBANESWAR: In a major boost to the state’s steel vision, JSW Steel and South Korean steel major POSCO have signed a joint venture (JV) agreement to establish a 6 million tonne per annum (MTPA) integrated greenfield steel plant in Dhenkanal district. The agreement was formalised in New Delhi on Monday.
The project signals a significant comeback for POSCO, nearly eight years after it exited the ambitious Paradip steel project in 2017. The South Korean major had earlier signed a $12 billion MoU with the state government in 2005 to build a 12 MTPA plant near Paradip. Tipped to be one of the largest-ever foreign direct investment proposal for the country at the time, the project could not see the light of the day due to prolonged delays in land acquisition and environmental concerns forcing the company to withdraw.
The new JV builds on a series of prior engagements between the two companies, including an MoU in October 2024 and a heads of agreement (HoA) in July 2025. The integrated steel project will include steelmaking, hot rolling and cold rolling/coating facilities, with land already secured.
Designed to produce high-grade flat steel products, the plant will cater to sectors such as automobiles and electrical equipment. Leveraging POSCO’s advanced technological capabilities, the venture aims to complement JSW Steel’s existing portfolio while opening up new product opportunities in India’s rapidly expanding market. The project is expected to be operational by 2031, sources familiar with the development said.
Officials indicated that the JV will also benefit from synergies with POSCO’s 1.8 MTPA downstream facility in Pune, enhancing value-added steel production and supply chain efficiency.
The Dhenkanal venture is being executed through Saffron Resources Pvt Ltd, a wholly-owned subsidiary of JSW Group. Saffron Resources has a land parcel of 970 acre, which it had acquired from Lanco Babandh Power Limited after its parent company Lanco Infratech became insolvent in 2017.
Earlier, in March 2025, the High-level Clearance Authority (HLCA) chaired by Chief Minister Mohan Charan Majhi had approved the 6 MTPA joint venture steel project of JSW and POSCO in Keonjhar district with an estimated investment of Rs 35,000 crore.
The Keonjhar part will now be restricted to iron making and the adjacent Dhenkanal district will produce steel.
Clarifying the distinction between the two projects, additional chief secretary (Industries), Hemanta Sharma said around 3,000 acres are required for a 6 MTPA plant. While over 2,200 acres have already been identified in Keonjhar for ironmaking operations, the Dhenkanal site with 970 acres will primarily host steelmaking facilities.
JSW Steel has an integrated steel complex in Angul district, which has been expanded from 6 MTPA to 11.6 MTPA recently.