VOIWORLD/DESK
JSW Steel and South Korea’s Posco have signed a non-binding Heads of Agreement (HoA) to explore the establishment of a 6 million tonnes per annum (MTPA) integrated steel plant in India, with Odisha emerging as one of the top contenders for the project site.
The agreement was signed in Mumbai on Monday, in the presence of Lee Ju-tae, representative director and president of Posco Holdings, and Jayant Acharya, joint managing director and CEO of JSW Steel. The HoA sets the framework for a proposed 50:50 joint venture first announced in October 2024.
As the next step, the companies will conduct a detailed feasibility study to finalise the plant’s location, investment model, resource requirements, and other key factors. Odisha, with its resource base and logistical advantages, is among the prime locations under consideration.
“JSW and Posco are evaluating sites that make sense in terms of proximity to mines, logistics, and ports. Odisha remains one of our potential sites,” Acharya said. He added that the collaboration would combine JSW’s strong domestic presence and execution capabilities with Posco’s global expertise in steelmaking.
The venture, he said, would align with India’s Atmanirbhar Bharat vision and contribute to building a globally competitive manufacturing hub to serve both domestic and export markets.
Lee Ju-tae noted that India is central to the future of global steel demand. “Our collaboration with JSW is based on mutual trust and a shared long-term vision. This initiative represents our commitment to supporting India’s industrial growth while creating long-term value for both organisations.”
For Posco, this marks another attempt to establish upstream steelmaking capacity in India, following several earlier efforts — including a partnership with the Adani Group in 2022 and plans for a $12 billion greenfield facility in Odisha that did not materialise. The company has also explored ventures with Shree Uttam Steel and Power, state-run Steel Authority of India, and Rashtriya Ispat Nigam.
