South Korean steel major Posco set to return to Odisha after two decades: Government
Over two decades after leaving a mega project in Odisha following large-scale unrest by local people, South Korean steel major Posco is all set to return to the state and set up a greenfield plant in collaboration with JSW Group.
This was announced by Additional Chief Secretary, Industries, Hemant Sharma, here.
“We are very happy to announce that Posco is returning to Odisha. An agreement in this regard was signed on Monday during the South Korean President’s visit to India,” Sharma told reporters here.
Posco, which had planned to set up a mega steel mill of 12mtpa at an investment of Rs 51,000 near Paradip in Jagatsinghpur district in early 2000, had to abandon it in the face of stiff opposition by local people during the land acquisition process.
Apart from this, the company also failed to get a raw material linkage following a change of mineral policy in the country. Sharma said they have shown interest in setting up two major Greenfield projects in Odisha, one a 6 mtpa plant in Keonjhar district and another a 5 mtpa capacity steel mill in Dhenkanal district.
“Though the state government has 1,000 acres of land for the purpose, it may arrange more if required. The state will provide all logistics to Posco to set up its proposed plants in Odisha,” Sharma said. In a major boost to Odisha’s industrial landscape, JSW Group has announced a significant investment in the state in partnership with the South Korean steel giant.
The two companies have signed a joint venture agreement to establish a mega steel plant in Dhenkanal district.
Sources said the agreement in this regard was signed at the India-Korea Business Summit held in New Delhi on Monday, in the presence of Union Commerce Minister Piyush Goyal, JSW Group Chairman Sajjan Jindal, and Posco Chairman Chang In-hwa.
In the proposed project in Dhenkanal, both JSW and Posco will hold equal stakes of 50 per cent each and the total investment is estimated at around Rs 35,000 crore.
The project is expected to generate significant employment opportunities, both directly and indirectly, and contribute to the economic growth of the region.
