Odisha Chief Minister Mohan Charan Majhi on Wednesday (27 May) attended the commencement of construction work for JSW Steel’s mega integrated steel plant at Dhinkia near Paradip, setting in motion one of the state’s largest industrial projects.
The project is coming up in the Ersama region of Jagatsinghpur district, close to Paradip port. The complex will combine steelmaking with captive power, cement production, jetty facilities and raw material movement infrastructure.
According to the Chief Minister’s Office, the project involves an investment of ₹1,25,000 crore.
Majhi said the investment would support Odisha’s aim of becoming the “Steel Capital” of India.
The mega steel plant is planned to be developed in two phases with total annual steel production capacity of over 24 million tonnes.
The industrial complex will include a cement unit, a 900 MW captive power plant and a dedicated jetty linked to the Paradip industrial belt.
The Paradip steel complex earlier received environmental clearance for 13.2 MTPA crude steel capacity, along with a 10 MTPA cement grinding unit and a 900 MW captive power plant.
Raw material movement will be supported through an iron ore processing facility in Keonjhar district and a slurry pipeline of around 312 Km from Joda to the Paradip plant site.
A captive jetty with 52 MTPA handling capacity is planned near the mouth of the Jatadharmohan River Creek to support import and export movement for the integrated steel plant.
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The cleared configuration includes 13.20 MTPA crude steel capacity, a 32 MTPA pellet plant, 13.5 MTPA blast furnace capacity, 13.49 MTPA steelmaking shop capacity, 13.2 MTPA caster shop capacity, 9.74 MTPA flat products and 2.8 MTPA long products.
The Ministry of Environment, Forest and Climate Change had earlier granted environment clearance for a 13.2 MTPA crude steel greenfield integrated steel plant with a 10 MTPA cement grinding unit and a 900 MW captive power plant near Paradip in Jagatsinghpur district.
The clearance was later re-validated in September 2023 after directions linked to National Green Tribunal and Supreme Court proceedings.
The latest construction milestone is significant because the Dhinkia-Paradip site had remained associated with delayed mega steel investment plans for years.
The land parcel was earlier linked to South Korean steel major POSCO’s proposed 12 MTPA project, which did not take off after prolonged resistance, legal issues and delays.
JSW Steel’s Paradip project was initially estimated at around ₹65,000 crore, but the cost could rise substantially because of capacity enhancement and the plan to start construction of two large blast furnaces with advanced technology at the same time.
JSW plans to scale the Paradip steel complex up to about 25 MTPA over time, making it one of India’s largest steel manufacturing facilities once fully developed.
The project is strategically important for Odisha because of its location near Paradip port, its access to mineral-rich districts and its planned slurry pipeline connectivity from Keonjhar. Port access, iron ore logistics, captive power and downstream units will support large-scale steel production and related industrial activity.
During the event, Majhi called upon stakeholders to work together to make Odisha one of the most developed states in the country by 2036, the centenary year of the state’s formation.
The Chief Minister also announced that Odisha will sign a “Sister States” agreement with Japan’s Tottori prefecture to strengthen cooperation in industry, tourism and education.
He also referred to wider industrial activity in the state, including Japan-based JFE Steel’s association with a ₹30,000 crore project in Jharsuguda and proposed new steel projects in Dhenkanal and Keonjhar districts.
The Chief Minister said the state government remains committed to industrialisation and employment generation.
He said 433 projects worth ₹8.5 lakh crore had been approved in the last two years, with employment potential for more than five lakh people.
Majhi also said 148 projects had already completed ground-breaking ceremonies, with job potential for around 2.37 lakh youths.
With construction now beginning at the JSW site, Paradip is set to become a central point in Odisha’s next phase of steel-led industrial expansion.
