South Korean Steel Giant Posco to Re-enter Odisha Market After 20-Year Absence

Posco to Reenter Odisha with Greenfield Steel Plant

After over two decades of leaving a mega project in Odisha, South Korean steel major Posco is set to return to the state and establish a greenfield plant in collaboration with JSW Group. This was announced by Additional Chief Secretary, Industries, Hemant Sharma, in Bhubaneswar.

The agreement was signed on Monday during the South Korean President's visit to India. Posco had initially planned to set up a mega steel mill of 12 million tons per annum (mtpa) at an investment of Rs 51,000 crore near Paradip in Jagatsinghpur district in early 2000. However, the company was forced to abandon the project due to stiff opposition by local people during the land acquisition process. Additionally, Posco failed to secure a raw material linkage following a change in mineral policy in the country.

Sharma stated that Posco has expressed interest in setting up two major greenfield projects in Odisha. The first project is a 6 mtpa plant in Keonjhar district, while the second is a 5 mtpa capacity steel mill in Dhenkanal district. The state government has allocated 1,000 acres of land for the proposed projects and may arrange for more land if required. Sharma assured that the state will provide all necessary logistics to Posco to establish its proposed plants in Odisha.

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In a significant boost to Odisha's industrial landscape, JSW Group has announced a substantial investment in the state in partnership with Posco. The two companies have signed a joint venture agreement to establish a mega steel plant in Dhenkanal district. The agreement was signed at the India-Korea Business Summit held in New Delhi on Monday, in the presence of Union Commerce Minister Piyush Goyal, JSW Group Chairman Sajjan Jindal, and Posco Chairman Chang In-hwa.

The proposed project in Dhenkanal is expected to generate significant employment opportunities and contribute to the economic growth of the region. The joint venture will have equal stakes of 50% each, with a total investment estimated at around Rs 35,000 crore.