Paradip likely to anchor JSW Steel’s next expansion phase toward 50-MT goal

Paradip in Odisha has emerged as the frontrunner for JSW Steel’s next major port-based expansion, as the Sajjan Jindal-led company charts its course to reach a 50 million tonne (mt) steelmaking capacity within this decade.

According to JSW Steel, a coastal site like Paradip offers strong logistical advantages that can substantially reduce operating costs. The company, which expects to close the current fiscal year with a domestic capacity of 36.2 mt, is planning to set up a new 5 mt integrated steel plant at Paradip in the first phase of its expansion.

Supporting infrastructure for this project is already taking shape. JSW Infrastructure — part of the same group — is constructing a 302-kilometre slurry pipeline from Joda in Odisha’s Keonjhar district to Paradip to transport iron ore efficiently. The company is also developing two iron ore pellet plants of 8 mt capacity each at the site. The slurry pipeline is expected to be commissioned in FY27, followed by the pellet plants in FY28.

SW Steel’s board has already cleared investments to scale up its domestic production capacity to 43 mt by FY29. This includes a 5 mt expansion at Dolvi (Maharashtra), an additional 2 mt at Vijayanagar (Karnataka) through debottlenecking, and a 1 mt electric arc furnace project at Kadapa (Andhra Pradesh).

To reach the 50 mt milestone — a first for any Indian steelmaker — the company is evaluating two options: a brownfield expansion of its Vijayanagar facility or the proposed greenfield project at Paradip. A final decision is expected within the next year, though Odisha, with its proactive policy support and port-led advantages, is currently seen as the more favourable choice.

The proposed site in Jagatsinghpur district spans 2,980 acres, previously earmarked for the shelved Posco steel project. JSW considers it a “semi-brownfield” location due to the ongoing investments in infrastructure and logistics connectivity.

The planned slurry pipeline alone is expected to cut iron ore transportation costs by ₹900–1,000 per tonne, while the port-based setting will help the company avoid the ₹1,500 per tonne cost of hauling coking coal to inland plants.