By Bizodisha Bureau, Bhubaneswar, October 8, 2018: Sajjan Jindal-led JSW Steel is understood to have worked out a plan to begin construction activity on a 12 million tonne mega steel plant proposed in Jagatsinghpur district in the next fiscal.

In the first phase, it proposes to put up a blast furnace with a 5 million tonne capacity, sources said.

Incidentally, the JSW Steel project is scheduled to come up at a site where South Koean steel giant Posco India was supposed to build a mega steel plant at an investment of more than Rs 50,000 crore.

However, due to strong opposition from the local, Posco project just could not take off and the South Morean company finally offered to give up the land handed over by the state government. 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.

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”, Company sources said.

JSW Steel has pledged Rs 55000 crore investment on the mega steel plant and required infrastructure – 900 MW captive power plant, 32 million ton pellet unit and a slurry pipeline to transport iron ore concentrates from Joda to the project site proposed near Paradip.

JSW Steel has formed a wholly owned subsidiary- JSW Utkal Steel Ltd to spped up the implementation of its 12 mtpa crude steel plant and other inter-linked projects in Odisha.

The Greenfield Steel plant planned in Odisha will be key 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.