Mumbai, 19/08/2025: India’s JSW Steel and South Korea’s POSCO Group have taken a decisive step toward strengthening their industrial partnership by signing a non-binding Heads of Agreement (HoA) to explore the possibility of setting up a 6 million tonnes per annum (MTPA) integrated steel plant in India. Odisha has emerged as the frontrunner for the project, given its abundant mineral resources, favorable geography, and logistical advantages.
The latest HoA builds upon a Memorandum of Understanding (MoU) signed by the two companies in October 2024. That earlier pact laid out the foundation for a 50:50 joint venture and envisioned a steel plant with an initial capacity of 5 MTPA. It also highlighted collaboration in battery materials for electric vehicles and renewable energy development, signaling the broader strategic goals of the partnership.
The new agreement was signed in Mumbai in the presence of Lee Ju-tae, President of POSCO Holdings, and Jayant Acharya, Joint Managing Director and CEO of JSW Steel. Both companies will now carry out a detailed feasibility study to finalize the exact location of the plant, the scale of investment, and the availability of resources. Odisha, particularly Keonjhar district, is widely seen as the most likely site due to its natural advantages and proximity to mining regions.
JSW Steel brings strong execution capability and a large domestic market footprint, while POSCO offers cutting-edge steelmaking technology and global experience. Jayant Acharya said the proposed venture combines the best of both companies and supports India’s Atmanirbhar Bharat vision. According to him, the project will help create a globally competitive manufacturing hub that serves both domestic and export markets.
POSCO Holdings’ Lee Ju-tae emphasized India’s central role in the future of global steel demand. He said the collaboration with JSW is built on mutual trust and a shared long-term vision. For POSCO, this initiative reflects a strong commitment to supporting India’s industrial growth while ensuring long-term value creation for both companies.
The scale of the project is also in line with JSW Steel’s ambitious growth plans. The company currently has a production capacity of about 35.7 MTPA and aims to raise it to more than 43 MTPA within the next three years. For POSCO, which has a crude steel capacity of about 42 MTPA globally and a strong international supply network, the venture offers an opportunity to strengthen its position in one of the world’s fastest-growing steel markets.
This is not POSCO’s first attempt to establish a large steel plant in Odisha. In 2005, the company proposed a $12 billion, 12 MTPA project that was eventually abandoned due to land acquisition challenges and protests. That plan was formally shelved in 2017. By joining hands with JSW Steel, which already has land and a strong domestic base, POSCO may now have found the right partner to make the long-delayed Odisha project a reality.
At present, the HoA represents a signal of intent rather than a final commitment. The feasibility study will be crucial in determining whether financing, approvals, and land acquisition can align successfully. If realized, the project would be a major boost for India’s eastern steel belt and reinforce Odisha’s status as a key hub for industrial growth.
