SOUTH KOREA's POSCO Group has signed an agreement with JSW Group, led by Sajjan Jindal, to establish an integrated steel plant in India.
The proposed plant will have an initial capacity of 5 million tonnes per annum (MTPA) and, as per industry estimates, may cost around £366.2 million.
While JSW Group's statement did not provide specific details on the investment or location of the planned steel plant, industry sources suggest that a greenfield steel project of this scale typically costs around £73.2m per MTPA. The MoU was signed at JSW Group’s Mumbai headquarters, attended by Jindal, POSCO Chairman Chang In-hwa, and senior executives from both companies.
The agreement also outlines collaboration in other sectors, including battery materials and renewable energy for the plant's captive needs. For POSCO, this partnership aligns with its long-standing objective of establishing a significant presence in India's steel sector, driven by the growing demand in the country.
"This MoU with POSCO is a key step in our efforts to contribute to the Indian steel industry. India, as one of the world's fastest-growing economies, offers substantial opportunities for sustainable growth, and our collaboration with POSCO reinforces JSW’s commitment to this transformation," said Sajjan Jindal, chairman of JSW Group. Jindal added that the partnership aims to set new benchmarks in technology and sustainability.
The collaboration will focus on developing an initial 5 MTPA integrated steel plant in India. "This partnership will contribute significantly to the economic development of Korea and India, and support joint efforts for a more eco-friendly and sustainable future," said POSCO Chairman Chang In-hwa. Chang noted that combining JSW's manufacturing presence with POSCO's technological expertise could create a strong platform for innovation in India's steel and energy sectors.
POSCO has pursued entry into the Indian market for years, including a prior 12 MTPA project in Odisha, which did not proceed due to delays in land acquisition. The company later explored a collaboration with Rashtriya Ispat Nigam Ltd (RINL) and then with Adani Group for potential projects.
