Industry Odisha Bureau, April 22: Clearing air on fate of announced mega steel plant project by POSCO in Keonjhar district, Industries Minister Sampad Chandra Swain today said the South Korean steel company in collaboration with Sajjan Jindal-led JSW will set up two steel plants in Odisha. Speaking to media persons here, Swain said, “It is very good news for Odisha that the companies who left our state earlier, now returned back re-imposing their faith in the double engine Sarkar.”
The two leading steel companies will establish two mega steel plants in Dhenkanal and Keonjhar districts, for which the two firms have already signed the MoUs, he said. The Keonjhar plant will be of 6 MTPA capacity while a 5MTPA plant to be developed in Dhenkanal districts, he said.
For the Keonjhar plant, the land acquisition process is under progress. Out of 12 panchayats, where land will be allocated for the steel plant, Gram Sabha has completed six Panchayats, the Minister informed.
A Special Task Force has been formed to expedite the project, he added. “We have adequate land in Dhenkanal district for the project by POSCO & JSW. If more parcels of land will be requited, we will provide,” Swain said.
South Korean steel major POSCO all set to return to Odisha over two decades after leaving a mega project in Jagatsinghpur district following large-scale unrest by local people.
Additional Chief Secretary, Industries, Hemant Sharma, earlier said, “We are very happy to announce that POSCO is returning to Odisha. An agreement in this regard was signed on Monday during the South Korean President’s visit to India,” Sharma told reporters here.
POSCO, which had planned to set up a mega steel mill of 12 MTPA at an investment of Rs 51,000 near Paradip in Jagatsinghpur district in early 2000, had to abandon it in the face of stiff opposition by local people during the land acquisition process.
Apart from this, the company also failed to get a raw material linkage following a change of mineral policy in the country. “Though the state government has 1,000 acres of land for the purpose, it may arrange more if required. The State will provide all logistics to Posco to set up its proposed plants in Odisha,” Sharma said.
In a major boost to Odisha’s industrial landscape, JSW Group has announced a significant investment in the state in partnership with the South Korean steel giant. The two companies have signed a joint venture agreement to establish a mega steel plant in Dhenkanal district.
The agreement in this regard 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.
In the proposed project in Dhenkanal, both JSW and Posco will hold equal stakes of 50 per cent each and the total investment is estimated at around Rs 35,000 crore. The project is expected to generate significant employment opportunities, both directly and indirectly, and contribute to the economic growth of the region, officials said.
Also Read : – JSW & POSCO to set 6 MTPA Integrated Steel Plant in Dhenkanal
