JSW Steel, POSCO Form 50:50 JV for Odisha Plant During Korean President's Visit

The Board of Directors of JSW Steel approved the Share Subscription and Joint Venture Agreement during a meeting held on Friday, April 17.

The proposed facility is designed to have a production capacity of 6 million tonnes per annum (MTPA). Saffron Resources currently possesses 887 acres of land in Odisha, comprising approximately 595 acres of freehold land and 292 acres of leasehold land, which is intended for the setup of the new plant.

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

As part of the financial arrangement detailed in the filing, the POSCO Group will subscribe to shares in Saffron Resources for a consideration of approximately Rs 508.8 crore, subject to standard closing adjustments.

The filing stated that the companies expect to complete the sale and share issuance by December 31, 2026, unless the parties mutually agree to an extension. The transaction is being conducted at arm's length and does not fall within the ambit of related party transactions.

The disclosure also noted that the collaboration aims to deepen strategic ties between the two major steel producers. For JSW Steel, which currently has a crude steel production capacity of 35.7 MTPA, the venture aligns with its broader goal to reach a capacity of 50 MTPA in India by the 2031 fiscal year. POSCO, headquartered in Pohang, South Korea, maintains a manufacturing capacity of approximately 45 MTPA and is recognized as the largest steel producer in its home country.

The statement came ahead of President of South Korea, Lee Jae-myung, accompanied by First Lady Kim Hea-kyung, arriving in India on Sunday, marking a significant pivot in New Delhi-Seoul relations, being the first state visit by a South Korean leader in over eight years.

The visit is being framed as a crucial step for South Korea's "Global South" diplomacy and a "reboot" of the Special Strategic Partnership.

India and South Korea elevated their ties to a "Special Strategic Partnership" in 2015, and since then, cooperation between the two countries has broadened significantly. Both sides have focused on enhancing collaboration in areas such as advanced manufacturing, semiconductors, defence production, green energy, infrastructure development, and digital innovation.

South Korean companies have also played a growing role in India's industrial and consumer sectors, while Indian firms have deepened their presence in the Korean market.

The arrival of the South Korean President is expected to provide fresh momentum to ongoing bilateral initiatives and open discussions on expanding trade and investment opportunities.

India has been actively working to strengthen its engagement with Indo-Pacific partners, and South Korea remains a key pillar in this broader regional vision.

The President's itinerary is packed with high-level engagements designed to solidify ties between Seoul and New Delhi.

External Affairs Minister (EAM) S Jaishankar on Sunday called on South Korean President Lee Jae-myung and said that the talks with Prime Minister Narendra Modi tomorrow will further the Special Strategic Partnership between the two countries.

In a post on X, he praised President Lee Jae-myung's commitment to deepen ties and said, "Honoured to call on President @Jaemyung_Lee of the Republic of Korea as he begins his State Visit to India. Value his commitment to deepen India - Korea relations across multiple domains. Confident that his talks tomorrow with PM @narendramodi will further strengthen our Special Strategic Partnership."

The centrepiece of the visit will be a bilateral summit at Hyderabad House, where President Lee will hold extensive talks with Prime Minister Narendra Modi.

The discussions are expected to culminate in the exchange of several Memorandums of Understanding (MoUs), likely focusing on critical technologies: cooperation in semiconductors and green energy; defence production by strengthening the "Make in India" initiative through Korean engineering; and economic trade by expanding the Comprehensive Economic Partnership Agreement (CEPA).

Following the summit, the leaders will issue joint press statements to outline their shared vision for a stable and prosperous Indo-Pacific.

Recognising the vital role of the private sector, President Lee will participate in a Business Forum at the iconic Bharat Mandapam. This forum will bring together industry titans from both nations to explore investment opportunities and supply chain resilience.

The state visit will conclude with a meeting with President Droupadi Murmu at Rashtrapati Bhavan, signifying the deep cultural and political respect between the two nations, the MEA said in a statement.

- ANI