JSW x POSCO: A ₹508 Crore Bet on Indian Steel

JSW Steel has entered into a joint venture with South Korea’s POSCO to develop a greenfield integrated steel plant in Odisha, as per a regulatory filing.

The project will be executed through Saffron Resources Private Limited, a wholly owned subsidiary of JSW Steel, which will be converted into a 50:50 joint venture between the two partners. The JSW Steel board approved the share subscription and joint venture agreement at its meeting on April 17.

The proposed facility will have a planned capacity of 6 million tonnes per annum (MTPA). Saffron Resources currently holds 887 acres of land in Odisha—comprising 595 acres of freehold land and 292 acres of leasehold land—earmarked for the project.

Both companies will have equal representation on the board, with rights to appoint an equal number of directors, ensuring joint control of the venture.

As part of the transaction, POSCO Group will invest approximately ₹508.8 crore in Saffron Resources through share subscription, subject to customary adjustments. The deal is expected to be completed by December 31, 2026, unless extended by mutual agreement. The filing also clarified that the transaction is being conducted on an arm’s length basis and does not constitute a related party transaction.

News by Rahul Yelligetti.