The board of directors of India's JSW Steel limited has approved a 50:50 joint venture with South Korea's POSCO Group to build a new 6 million tonne per annum steel plant in the eastern state of Odisha, according to the company's regulatory filing on Monday, April 20.
The statement said that wholly-owned subsidiary JSW Steel limited Saffron Resources Pvt Ltd will be a 50:50 joint venture between JSW Steel and POSCO Group, which includes POSCO Company limited and POSCO-India Private limited. The transaction will be completed by December 31, 2026.
Saffron Resources currently owns 887 acres of land in the state, including about 595 acres of freehold land and nearly 292 acres of leased land, which could be used for the proposed steel complex, the company said.
Formerly POSCO Group proposed investing $12 billion to build an integrated steel plant in Odisha, but the project was abandoned in 2017 after years of land acquisition disputes, regulatory hurdles and local resistance.
