Biznextindia: JSW Group (JSW) has signed a Memorandum of Understanding (MoU) with Korea’s POSCO Group (POSCO), to set up a 5 MTPA integrated steel plant in India. The MoU was signed at JSW Group’s corporate headquarters in Mumbai, in the presence of JSW Group Chairman Mr. Sajjan Jindal, POSCO Chairman Mr. Chang In-hwa, and senior executives from both the business houses. The MoU will also explore collaboration in steel , battery materials, and renewable energy sectors in India. However, both the companies have not disclosed the location of the project, but Odisha could be the preferred location given the raw material linkage of JSW.
The POSCO’s original Odisha Project was a proposed initiative by the South Korean steel giant POSCO to establish a large steel plant in the Jagatsinghpur district of Odisha, India. Announced in 2005 with a planned investment of around $12 billion, the project aimed to set up a 12 million-ton-per-year steel plant, making it one of the largest foreign direct investments in India at the time. However, it faced significant delays and resistance due to local opposition, environmental concerns, and issues around land acquisition. Despite initial governmental support, the project was ultimately shelved in 2017, as POSCO withdrew due to regulatory challenges and sustained protests from local communities concerned about land rights and ecological impacts.
JSW is investing Rs.63000 crore to set up an integrated steel mill in Odisha’s Paradip. The Odisha government had handed over JSW Steel the land it had acquired originally for the 12 mtpa steel project proposed by POSCO.
“The partnership will focus on setting up an integrated steel plant in India with an initial capacity of 5 million tonnes per annum (MTPA). Further, energy transition is propelling the growth of renewable energy and battery material sectors in India. The two Groups will also explore collaborations in the areas of battery materials related to Electric Vehicles (EVs), and renewable energy for meeting the captive requirements of the proposed integrated steel plant. JSW’s leading manufacturing presence and strong project execution capabilities, combined with POSCO’s technological excellence, would create a strong platform for developing cutting edge solutions for the Indian steel and energy sectors” JSW said in a statement.
On the MoU Sajjan Jindal, Chairman of JSW Group, said, “This MoU with POSCO marks a significant step forward in our journey to contribute to the Indian steel industry. As one of the world’s fastest-growing economies, India presents tremendous opportunities for sustainable growth, and our partnership with POSCO strengthens JSW’s commitment to drive that transformation. This JV also entails collaboration for renewable energy for a state-of-the-art integrated steel plant and for setting up an EV ecosystem in India. Together, we aim to set a benchmark in technology and sustainability that can shape the future of manufacturing in India and beyond.”
Chang In‐hwa, Chairman of POSCO said, “We are delighted to strengthen our ties with JSW Group. This collaboration will contribute significantly to the economic development of Korea and India and drive our joint efforts towards a more eco-friendly and sustainable future.”
