With over 25% of India's iron ore reserves, Orissa accounts for over 10% of India's steel production capacity and has a crucial advantage in the iron & steel industry. Further, the presence of seaports in the state makes exports and imports cost effective and more competitive. The government has been taking steps to promote the iron & steel industry in the state. Prominent players present in Orissa's steel industry are SAIL and Neelachal Ispat Nigam limited.

The state government has signed Memoranda of Understanding (MoU) with 45 companies for setting up steel plants of various capacities in the iron-ore rich parts of the state.

These include :

• POSCO (Pohang Steel Company), 5th largest steel producer in the world, signed an MoU with Government of Orissa to set up a 12 MT integrated steel plant at Paradeep with an investment of Rs.51,000 crores.
• Arcellor-Mittal, world's largest steel producer signed an MoU with Government of Orissa to set up a 12 MT integrated steel project at Patna in Keonjhar District with an investment of Rs.40,000 crores.
• Tata Steel , India 's largest private steel maker plans to develop a 6 MT steel plant at Duburi with an investment of Rs. 15,400 crores.
• Vedanta Resources Plc plans to set up a 5 MT steel plant in Keonjhar district of Orissa at an approximate cost of Rs. 12500 crores.
• Essar Steel Plans to set up a Greenfield steel plant in Orissa with a capacity of 4 MT with a likely investment of over Rs. 6846 crores.
• Jindal Stainless Ltd. is setting up a Greenfield stainless steel complex in Jajpur district with an investment of around Rs. 1612 crores.

Jindal Steel & Power Ltd. has signed a MoU with the Orissa Government to set up a 6 MT ferro alloys plant and a 900 MW captive plant near Angul with an investment of over Rs. 13135 crores.