Posco, JSW Steel May Plough $9 Billion Into Odisha Plant

South Korea's Posco Holdings is making a third bid to crack India's steel market—this time with local giant JSW Steel as partner.

- Dipali Banka & Vaishnavi Kasthuril

The two companies on Monday announced plans to set up a 6 million tonne per annum (mtpa) plant, likely in Odisha. Notably, Posco's first attempted steel plant in India, announced in 2005, was also in Odisha.

A joint statement by the two companies did not mention the investment amount. However, two executives aware of the matter said the companies intend to spend ₹70,000-80,000 crore ($8-9 billion) to set up the plant.

According to these executives, who requested not to be named, a 900-acre land parcel that JSW Steel purchased in Odisha in the June quarter could be used for the project.

Earlier, at a post-earnings interview in July, JSW Steel chief executive Jayant Acharya had told Mint that no project had been finalized for the land. "This (the land) is closer to the city of Cuttack, Paradeep Port, and the mining area. It makes sense for us to have a land bank in Orissa, and that is why we have acquired it. There is, as of now, no plan, but it is for future expansion, if required for any," Acharya had said.

The two companies will also collaborate in the area of batteries for electric vehicles, and for captive renewable power for the steel plant.