Dikhyaa Mohanty 
The massive steel project in Odisha was abandoned by South Korean steel firm POSCO more than 20 years ago owing to local objections, but the corporation is now making a significant return to the state. A noteworthy accomplishment is the establishment of a greenfield integrated steel factory in Odisha through a 50:50 joint venture between POSCO and JSW Steel. At the India-Korea Business Summit in New Delhi on Monday, the deal was inked. Speaking to reporters, Hemant Sharma, Additional Chief Secretary (Industries), verified the news. “We are pleased to announce POSCO’s return to Odisha. During the South Korean President’s visit to India on Monday, an agreement was made in this respect, he added.
Six million tonnes of integrated steel production per year (MTPA) will be the initial capacity of the proposed facility in the Dhenkanal area. An estimated Rs 35,000 crore would be invested overall, with equal shares held by POSCO and JSW Steel. JSW Steel subsidiary Saffron Resources Private Limited will carry out the joint venture. By the end of 2026, the agreement is anticipated to be finalized.
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.
