JSW Steel aims to begin work on Odisha's 12 mn tonne steel plant in 2019-20

JSW Steel has pledged Rs 550 billion investment on the mega steel plant and attendant infrastructure - a captive power plant, a slurry pipeline and pellet unit

Sajjan Jindal-led JSW Steel aims to begin construction activity on a 12 million tonne mega steel plant proposed in Odisha's coastal area in the next financial year. The steel plant will be built in a staggered manner. In the first phase, a blast furnace with a 5 million tonne capacity will be commissioned. 

The JSW Steel project will be built at a site near Paradip abandoned by Posco India. The South Korean multinational in 2005 had announced a steel plant of 12 million tonne per annum (mtpa) with an investment of $12 billion. Later, Posco mothballed the mega steel plant and offered to give up the land handed over by the state government authorities. Odisha Industrial Infrastructure Development Corporation Ltd (Idco), the state-owned land agency had acquired 2700 acres of land for the Posco project. Out of this, 1700 acres was transferred to Posco India. 

Odisha's industries minister Anant Das recently said the land initially acquired for the Posco project has been allotted to JSW Steel. State officials maintain 2900 acres land has been allotted for the JSW Steel project.

“We are committed to the Odisha steel plant. The project will be developed in phases. A consultant has been roped in to decide on the product mix of the plant. Work on the project will begin after we obtain all clearances”, a senior JSW Steel official said.

JSW Steel has pledged Rs 550 billion investment on the mega steel plant and attendant infrastructure - 900 Mw captive power plant, 32 million tonne pellet unit and a slurry pipeline to transport iron ore concentrates from Joda to the project site proposed near Paradip.

In the first phase, JSW Steel will develop 2900 acres of land. The company in its original proposal submitted to the state government, had asked for 4500 acres.

JSW Steel has formed a wholly owned subsidiary- JSW Utkal Steel Ltd to fasttrack the implementation of its 12 million tonne crude steel plant and other inter-linked projects in Odisha. While the steel plant was initially proposed to be developed by JSW Steel, another group company JSW Infrastructure got the clearance to build the slurry pipeline. The company had requested the state government to transfer all clearances and approvals to JSW Utkal Steel Ltd.

Moreover, to secure iron ore supplies for its integrated steel project, the company has pitched for a long-term agreement for 50 years with state-owned Odisha Mining Corporation (OMC) to supply 30 mtpa of iron ore fines at IBM (Indian Bureau of Mines) declared price.

The greenfield steel plant planned in Odisha is central to JSW Steel's organic expansion. The steelmaker aims to ramp up its total crude steel capacity to 24.7 mtpa from 18 mtpa at present. Through its acquisition of Monnet Ispat & Industries Ltd located close to the mineral-laden belts in Chhattisgarh and Odisha, JSW Steel looks to expand footprint in central and eastern markets.