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JSW Steel and South Korea's POSCO have taken the next step in their strategic partnership by signing a non-binding Heads of Agreement to explore a 6 million tonnes per annum integrated steel plant in India. Building on their earlier MoU, the feasibility study will settle details like site, investment, resources and timelines. Odisha, rich in minerals and logistics is under consideration. This development follows POSCO's prior failed attempt at a mega Odisha project and a planned JSW 5 MTPA venture in Keonjhar. Together, the companies aim to blend JSW's scale with POSCO's technical edge, strengthening India's steel ambitions.
JSW Steel and the POSCO Group of South Korea have signed a non-binding Heads of Agreement to jointly explore building a 6 million tonnes per annum steel plant in India through a 50:50 joint venture. The pair intend to conduct a thorough feasibility study to determine the optimal location, investment structure, resource access and logistical specifics Odisha, with its rich mineral reserves and transport advantages, figures prominently among the shortlisted sites. Advertisement
This agreement advances the earlier understanding reached in October 2024, when the two firms signed a Memorandum of Understanding outlining the initial broad framework of cooperation. In Mumbai, executives Lee Ju-tae of POSCO Holdings and Jayant Acharya of JSW Steel formalised the new agreement, underscoring it as a milestone in deepening their strategic partnership.
Leaders from both companies emphasized the synergy: JSW brings its extensive domestic network and execution strength, while POSCO contributes technological leadership. They highlighted how the initiative aligns with India's vision of industrial self-reliance and could create a globally competitive manufacturing axis serving both domestic and export markets.
Beyond this, the plan builds upon prior proposals, including a smaller MoU for a 5 MTPA plant in Odisha and exploration of cooperation in renewable energy and EV battery materials. Industry watchers say the expanded 6 MTPA idea could further bolster India's steel output and export capacity, signaling renewed Korean interest after POSCO's earlier Odisha plans were stalled by land acquisition disputes.
Historically, POSCO had attempted to establish a USD 12 billion, 12 MTPA steel project in Odisha but withdrew after prolonged resistance and regulatory impasses. Land initially allocated to that venture eventually went to JSW, which had proposed its own 13.2 MTPA plant complex in Paradip, including ancillary facilities many of which faced protests. More recently, JSW struck an MoU with the Odisha government for a standalone 5 MTPA plant in Keonjhar, backed by roughly INR 35,000 crore in investment.
The current agreement not only widens industrial collaboration but also revives hopes of overcoming past challenges, blending Indian execution with Korean technology for a potentially transformative steel project.
Source PTI
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