JSW Steel and POSCO have officially approved the decision to form a 50-50 joint venture to establish an integrated steel plant with an annual capacity of 6 million tons in the state of Odisha, India. The project is considered one of the largest industrial investments in the state and also marks POSCO’s return to the region following its previously abandoned large-scale investment attempt nearly 20 years ago.
In a filing to the regulatory authority, the company announced that Saffron Resources Pvt Ltd, a wholly owned subsidiary of JSW Steel, will be converted into a 50-50 joint venture between JSW Steel and POSCO Group under the new structure. It was stated that the planned facility will be established in Odisha as an integrated steel production plant with an annual capacity of 6 million tons.
Regarding land and financial details, it was noted that Saffron Resources owns approximately 595 acres of freehold land and 292 acres of leased land in the state, totaling 887 acres, which can be used for the project. According to the agreement, POSCO Group will acquire shares in Saffron for approximately INR 508.8 crore, subject to closing adjustments. The transaction is targeted to be completed by December 31, 2026, unless the parties agree to extend it.
Strategic importance for Odisha
The project is seen as a critical step in finalizing the JSW–POSCO collaboration, which has been ongoing for more than a year, as a concrete investment in Odisha. It is planned that the joint venture will be established in the mineral-rich Keonjhar region. The region is also known as the hometown of India’s Chief Minister Mohan Charan Majhi.
In November 2024, Majhi publicly announced that the project would be implemented in Keonjhar. In December 2025, the state government informed the assembly that its high-level approval mechanism had approved the project, which foresees an investment of approximately INR 35,000 crore for a 6 million-ton capacity steel plant and the creation of around 8,000 direct and indirect jobs.
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