By Our Correspondent
BHUBANESWAR: The Sajjan Jindal led JSW Steel surrendered Jajang , Gonua running mining blocks in Keonjhar, plans steel plant in 3 locations in Keonjhar, Jagatsinghpur and Dhenkanal, the company running Bhushan plant in Jharsuguda, where it will get raw material to ensure production, this is a big question now. MoU with Odisha for Rs 35,000 plant in Dhenkanal looks eyewash.
The MoU for the Rs 35,000 crore steel plant in Dhenkanal, signed between the Odisha government and formerly Sourav Agrawal, Amit Singhal led Saffron Resources Pvt Ltd (JSW Group), was part of recent HLCA approvals and focuses on a 6 MTPA integrated facility. Saffron Resources Pvt Ltd owns 887 acres of land located in the Dhenkanal in Odisha,, acquired by JSW Steel in 2025 for future steel expansion, securing raw materials and increasing their footprint in Eastern India.
While some view it as potentially deceptive (“eyewash”), available details indicate it’s a proposal aligned with Odisha’s push for 12 new steel plants totaling 60 MTPA capacity across districts like Sundargarh, Jajpur, Angul, and others. Though JSW’s history of surrendering uneconomic mines could raise questions about long-term viability if raw material costs remain high and upcoming mining auction may be a reason behind the MoU. The project fits JSW’s goal to expand to 50 MTPA overall capacity by 2030, with Odisha as a key hub. If implementation stalls like past POSCO efforts in Jagatsinghpur, it could validate scepticism, but current momentum includes active land and approval processes for similar JSW projects.
JSW Steel has indeed surrendered the Jajang and Gonua iron ore mining blocks in Odisha, citing uneconomic operations as the primary reason. For Jajang in Keonjhar district, the company submitted a surrender notice in August 2024, after earlier attempts to retain it in 2023 based on market dynamics, but ultimately proceeded due to high costs. This led to a Rs 1,473 crore demand notice from the Odisha government in August 2025 for related obligations.
For Ganua, the surrender process began around 2021, following an aggressive bid at 132% premium, but was deemed unsustainable. Overall, JSW allocated Rs 445 crore in early 2025 to cover surrender costs for these and other assets.
Regarding running mining blocks, JSW Steel continues to operate several iron ore mines in Odisha and elsewhere in India as part of its backward integration strategy. It has secured several iron ore mines through auctions, with many operational as of early 2025, primarily in Odisha and Karnataka, providing partial captive sourcing for its steel production. Specific active Odisha blocks include those like Nuagaon and Narayanposhi, which help supply raw materials, though exact operational details on all aren’t publicly granular.
JSW Steel’s expansion plans in Odisha include integrated steel plants across three districts: Keonjhar, Jagatsinghpur, and Dhenkanal. In Keonjhar, a joint venture with South Korea’s POSCO aims for an initial 5-6 MTPA greenfield steel plant, potentially scaling to 13.2 MTPA, with land acquisition underway and an estimated investment of around Rs 35,000 crore.
This project, approved in March 2025, is expected to create 8,000-10,000 jobs and includes ancillary facilities like a cement plant and power generation. In Jagatsinghpur, through JSW Utkal Steel Ltd., the company is developing a 12-13.2 MTPA facility at Paradip (near Gadakujang, Dhinkia, and Nuagaon villages) with Rs 65,000 crore investment, including a captive power plant and port facilities, though it has faced local opposition over land displacement affecting up to 40,000 people.
In Dhenkanal, Saffron Resources Pvt Ltd (a JSW Group entity) plans a 6 MTPA steel plant with Rs 35,000 crore investment, recently approved by Odisha’s High-Level Clearance Authority (HLCA) in early January 2026 as part of a broader Rs 55,783 crore investment package. This is projected to generate about 8,000 jobs.
JSW Steel operates the acquired Bhushan Power & Steel Ltd (BPSL) plant in Jharsuguda (Thelkoloi village, Sambalpur district), an integrated 3.5 MTPA facility producing hot-rolled coils, cold-rolled sheets, bars, wire rods, and more. Raw materials for this plant are sourced primarily from open-market iron ore mines in Odisha, with transportation via rail (for the majority) and road for the rest. Coal has historically been imported (e.g., from South Africa in earlier years), while other inputs come through JSW’s broader supply chain, including some captive mining where available, though the company relies on a mix to maintain cost efficiency.
12 mineral blocks located in Sundargarh, Keonjhar, Balangir, Koraput and Nuapada districts including 3 iron ore blocks, 1 iron ore and Aluminous Laterite block, 2 limestone blocks,2 bauxite blocks, 1 manganese block,2 manganese and iron ore blocks, and 1 limestone and dolomite block put for auction.
12 minerals blocks were Alaghat West Iron Ore mines in Sundargarh, Rengalaberha North-East Extension and Nuagan West Iron Ore Block in Keonjhar, Thajurani-A1 Iron Ore block in Keonjhar, Kedesala West Iron Ore and Aluminous Laterite block in Sundargarh, Tarhapani West Bauxite block in Koraput, Karnapodikonda Bauxite block in Koraput.
Kutinga Manganese block in Koraput, Garramura limestone block in Nuapada, Telipadar –Lukapada Pipalmunda limestone block in Balangir, Patamunda-A Manganese and Iron Ore block in Sundargarh, Jajang –A Iron and Manganese block in Keonjhar and Tunmura limestone and dolomite block in Sundargarh. JSW Steel eyeing many of these mines.
