Odisha Steel Project: JSW Steel, POSCO Partner Amid High-Level Diplomatic Visit.

JSW Steel and South Korea’s POSCO have entered into a joint venture agreement to set up a greenfield integrated steel plant in Odisha, according to a regulatory filing.

The partnership will be implemented through Saffron Resources Private Limited, a wholly owned subsidiary of JSW Steel, which will now be converted into a 50:50 joint venture between the two companies. The JSW Steel board approved the share subscription and joint venture agreement at a meeting held on Friday, April 17.

The proposed steel facility is planned to have a production capacity of 6 million tonnes per annum (MTPA). Saffron Resources currently holds 887 acres of land in Odisha, including about 595 acres of freehold land and 292 acres of leasehold land, which will be used for the development of the plant.

Under the agreement, both JSW Steel and POSCO will have equal representation on the board of the joint venture entity, with the right to appoint an equal number of directors.

As part of the financial structure, POSCO Group will subscribe to shares in Saffron Resources for approximately ₹508.8 crore, subject to customary closing adjustments. The companies expect the transaction, including the sale and share issuance, to be completed by December 31, 2026, unless mutually extended. The filing also noted that the deal is being carried out on an arm’s length basis and does not qualify as a related party transaction.