The Odisha government confirmed that AM/NS India will not be relocating its proposed mega steel plant from Odisha, addressing speculations about a potential shift. The project, envisioned as one of the largest steel ventures in the region, aligns with Odisha’s strategic goals for industrial growth and job creation. This assurance came from state officials after AM/NS India reaffirmed its commitment to the location, highlighting Odisha’s appeal due to its mineral wealth, industrial infrastructure, and supportive policies.

The proposed steel project, with a significant projected capacity, is anticipated to boost local employment, catalyze auxiliary industries, and strengthen Odisha’s position in India’s steel production landscape. The state government is working closely with AM/NS India to streamline approvals and provide necessary infrastructure support, ensuring the project progresses on schedule.

Odisha has been proactively fostering industrial growth, and this project adds to the list of initiatives aiming to utilize the state’s mineral resources effectively. AM/NS India’s decision to maintain its plans in Odisha underscores the state’s attractiveness for large-scale industrial investments and signals a positive outlook for regional economic advancement.

India’s JSW Steel and South Korea’s POSCO have announced plans to jointly invest ?650 billion (~$7.73 billion) in constructing a steel plant in Odisha. The plant, which will have an initial capacity of 5 million tons of steel annually, is part of their strategy to tap into India’s rapidly growing steel market, fueled by its fast-paced economic expansion.

The cooperation agreement was signed last week, although specific financial details were not disclosed. The initial investment for the project will be ?200 billion, with the plant expected to be operational by next year. Over the following three years, the plant’s capacity is set to grow to 18 million tons per year, requiring the full $7.73 billion investment.

India’s steel demand has surged in response to infrastructure expansion and rapid economic development, positioning the country as a key market for the steel industry amid declining demand in Europe and the U.S. From April to August, steel demand in India reached its highest level in seven years, driven by the construction of new plants and warehouses for large corporations.

The new facility in Odisha will produce hot-rolled, cold-rolled, and galvanized steel. This venture marks POSCO’s latest attempt to establish a large enterprise in India. A few years ago, POSCO planned a $12 billion investment—the largest foreign direct investment project in India at the time—but the project was shelved due to land acquisition challenges.

Separately, JSW Steel is also pushing forward with decarbonization efforts, planning to invest $1 billion to reduce CO2 emissions and become carbon neutral by 2050. The company aims to cut emissions by 42%, reducing them to 1.95 tons of CO2 per ton of steel by 2030.

In addition, JSW Steel recently announced its acquisition of a 67% stake in Australian coal company M Resources for $120 million, enhancing its coal reserves and supply chain.

Odisha Chief Minister Mohan Charan Majhi announced that JSW Group, in collaboration with South Korean steel giant POSCO, will set up a greenfield steel facility in his home district of Keonjhar. This development follows speculation regarding the location of the joint venture.

During his two-day visit to Keonjhar to celebrate Diwali, Majhi disclosed that discussions about the steel plant took place during roadshows for the upcoming Make-in-Odisha conclave held in Delhi and Mumbai. He confirmed that the two companies have signed a Memorandum of Understanding (MoU) to establish the plant, which will be situated in the mineral-rich Keonjhar district.

The MoU was signed on October 29 at JSW Group’s corporate headquarters in Mumbai, with prominent figures such as JSW Group Chairman Sajjan Jindal and POSCO Chairman Chang In-hwa in attendance. The planned integrated steel plant will have an initial capacity of 5 million tonnes per annum (MTPA).

Additionally, the partnership will explore collaborations in battery materials for electric vehicles (EVs) and renewable energy to meet the captive needs of the proposed facility. The Odisha government has earmarked two land parcels in Keonjhar for this purpose: one spanning 2,500 acres near Odisha Tea Plantation Ltd in the Taramakant area under the Banspal block, and another 1,956-acre site in Patna, which was initially offered to steel major ArcelorMittal.

This venture marks a renewed effort by POSCO to establish a presence in Odisha after its earlier attempt to set up a 12 million tonnes steel mill in Paradip was abandoned due to protests and regulatory challenges.