6-MTPA facility to deploy low-carbon FINEX technology, marking biggest FDI in heavy industries this year
New Delhi, August 18, 2025
In a transformative development for India’s steel industry, JSW Steel and South Korea’s POSCO Group on Monday signed a landmark $5 billion joint venture to set up a cutting-edge integrated steel plant in India.
The 50:50 partnership was formalised today in Mumbai by President Lee Ju-tae of POSCO Holdings and Jayant Acharya, CEO of JSW Steel will form a 6 million tonnes per annum (MTPA) facility that will utilise POSCO’s FINEX technology, which is cleaner and more efficient than blast furnaces, with potential carbon emission reductions of nearly 20%, will make this plant one of Asia’s lowest cost and most environmentally sustainable hubs.
The deal marks the single-largest foreign direct investment (FDI) in India’s heavy industries this fiscal year and comes at a time when domestic steel demand is forecast to soar to 230 million tonnes by 2030, driven by infrastructure, urbanization, and auto sector growth.
“This collaboration goes beyond capacity expansion,” said Acharya. “We are ushering in a technological revolution that will make Indian steel globally competitive.”
Nearly 40% of the plant’s output will be earmarked for exports, leveraging India’s trade pacts with the EU and ASEAN nations. It is anticipated that the plant will be situated in Odisha because of an abundance of iron ore resources and good access to ports, although final negotiations with the state government are still in play.
Construction is expected to begin in early 2026, with Phase I to have its operations up and running by 2029. Industry analysts agree that timing is paramount since global buyers and Western market demand for low-carbon steel is rising, along with carbon tariffs.
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