By Our Correspondent
BHUBANESWAR: It looks, signed agreements with South Korea-based POSCO Group to enter into a joint venture to set up a 6 million tonne steel project in Odisha by JSW Steel not for Keonjhar project.
Saffron Resources Pvt Ltd owned 887 Acres of Land in Dhenkanal lures JSW Steel Ltd and South Korean POSCO Group joint Venture for a 6 Million Tonne Steel Project in Odisha.
The proposed joint venture would set up a Greenfield 6 MTPA integrated steel plant in Odisha, the company said. But where in Odisha, it does not say anything, that creating confusion, sources said. Both have already announced for a Steel Plant in Keonjhar , home turf of Odisha Chief Minister Mohan Charan Majhi.
The project will utilize 887 acres of land held by Saffron Resources in Odisha (595 acres freehold, 292 acres leasehold). That means, it will be in Dhenkanal , where locals opposing mysterious land transfers between Lanco Babandh Power Ltd, Saffron Resources Pvt Ltd and JSW Steel Ltd, now POSCO added.
JSW Steel board on Friday approved a proposal to sign agreements with South Korea-based POSCO Group to enter into a joint venture to set up a 6 million tonne steel project in India.
In an exchange filing, JSW Steel said the joint venture project is proposed to be set up in Odisha.
“Board of Directors has approved entering into a Share Subscription and Joint Venture Agreement, with POSCO Co., Ltd and POSCO- India Private Limited (together referred to as “POSCO Group”) through which Saffron Resources Private Limited , a wholly owned subsidiary of the Company would become a 50:50 Joint Venture between the Company and POSCO Group,” JSW Steel said.
Saffron possesses 887 acres of land in Dhenkanal the state that may be used to set up the proposed plant.
JSW Steel said further to share subscription and joint venture agreement, the POSCO Group will subscribe to shares of Saffron, for a consideration of Rs 508.8 crore, subject to closing adjustments.
On the rationale, the filing said, “The parties propose to enter into a joint venture to set up a greenfield 6 MTPA integrated steel plant in Odisha, India.” The JV will deepen strategic ties between the two steel producers. An association with POSCO Co. Ltd will enable the company to form a strategic partnership for access to technology and manufacturing of high-grade steel products for automotive and other applications.
JSW Steel and South Korea’s POSCO Group have formed a 50:50 joint venture to establish a 6 Million Tonnes Per Annum (MTPA) greenfield integrated steel plant in Odisha, India. The project involves a ~₹508.8 crore investment by POSCO to acquire stakes in JSW subsidiary Saffron Resources, utilizing 887 acres of land.
Key Details of the JSW-POSCO JV:
Project Goal: Establish a 6 MTPA integrated steel plant in Odisha.
Structure: 50:50 Joint Venture between JSW Steel and POSCO.
Investment: POSCO Group to subscribe to shares in Saffron Resources for ~Rs 508.8 crore.
Land & Location: The project will utilize 887 acres of land held by Saffron Resources in Odisha (595 acres freehold, 292 acres leasehold). That means, it will be in Dhenkanal , where locals opposing mysterious land transfers between Lanco Babandh Power Ltd, Saffron Resources Pvt Ltd and JSW Steel Ltd, now POSCO added.
Technology & Focus: The partnership combines JSW’s local manufacturing scale with POSCO’s advanced technologies to produce high-grade steel, particularly for automotive and other applications.
Timeline: The transaction is expected to be completed by December 31, 2026.
Rationale: The JV strengthens strategic ties between the two companies, aiding JSW in reaching its 50 MTPA capacity goal by FY31.
This partnership marks a significant return for POSCO to Odisha, aimed at enhancing India’s domestic value-added steel production.
