JSW Utkal Steel, a subsidiary of JSW Steel Ltd, has recently acquired possession of a vast expanse measuring 2,677.80 acres of forest land in Jagatsinghpur, Odisha. This acquisition is an important step towards their plan to establish an integrated steel plant with a capacity of 13.2 million tonnes in the region.
JSW Steel, a flagship business of the diversified JSW Group with a total valuation of US$13 billion, is an integrated steel company in India and the USA. With interests spanning energy, infrastructure, cement, paints, sports, and venture capital, JSW Steel has been certified as a Great Place To Work in 2021. Over three decades, it has evolved into India’s leading steel producer with a capacity of 28 MTPA and ambitious plans to reach 37.5 MTPA by FY25. The company’s Vijayanagar unit in Karnataka is the largest single-location steel-producing facility in India. Known for research and innovation, JSW Steel collaborates with global leader JFE Steel of Japan for cutting-edge technologies, producing high-value special steel products used in diverse industries. Recognitions include World Steel Association’s Steel Sustainability Champion, CDP Leadership Rating, Deming Prize for TQM, Dow Jones Sustainability Index inclusion, and being ranked among the top 15 global steel producers for 13 consecutive years. JSW Steel aligns its carbon reduction goals with India’s visions under the Paris Accord.
“…JSW Utkal Steel Ltd (JUSL), a wholly-owned subsidiary of JSW Steel Ltd receiving environmental clearance (EC) for setting up of a greenfield Integrated Steel Plant (ISP) of 13.2 million tonnes per annum (MTPA) crude steel from the Union Ministry of Environment & Forest and Climate Change (MoEF&CC) which was further re-validated by MoEF&CC in September 2023 with additional and modified EC conditions,” the company said in a regulatory filing. JSW Steel has augmented its statement by specifying that the overall project demands a land parcel totaling 2950.31 acres, with a substantial portion encompassing 2677.80 acres designated as forest land. Additionally, the Odisha government has already sanctioned the lease of 272.51 acres of non-forest land to JSW Utkal Steel Limited.
The steel manufacturer indicated in the previous year that the projected capital expenditure for developing a comprehensive integrated steel plant, designed to produce 13.2 million tonnes per annum, in conjunction with cement and power plants, is estimated to be approximately Rs. 65,000 crores. The initiation of the project’s phased construction is based on the company being provided with the designated land. A plot of land situated close to the Paradip port in Odisha had previously been designated for utilization by the Korean corporation, Posco. The intention was to establish a substantial 12-million-tonnes-per-annum steel manufacturing facility. However, this endeavor encountered insurmountable obstacles that hindered its commencement. Local opposition concerning land procurement and protracted delays in obtaining environmental approvals acted as significant deterrents, ultimately compelling Posco to relinquish its pursuit of the project.
In the midst of local uproar and concerns raised by the community, the National Green Tribunal (NGT) took decisive action in April of the preceding year by suspending the environmental clearance (EC) that had been previously granted to JSW Utkal. Beginning in 2021, the project faced strong opposition from locals who expressed deep-seated anxieties about potential displacement from their agricultural lands and the imminent threat posed to their betel vineyards. In the preceding year, the massive steel entity conveyed its intent to generate a significant influx of job openings within the immediate vicinity, signaling a promising pathway for employment prospects to flourish within the region.
