South Korean steel giant POSCO has received the green light to finally start work on its planned $12 billion steel plant in India in the coming weeks, India's prime minister Manmohan Singh said on Thursday, January 16, at a press conference during the state visit of South Korean president Park Geun-hye. POSCO's steel project had remained on the drawing board for eight years.
"I am very happy that the large-scale POSCO steel project in Odisha is set to be operational in the coming weeks, following the revalidation of its environmental clearance. The grant of mining concession for the project is also at an advanced stage of processing," the Indian prime minister said.
South Korean president Park said that, with the acquisition of land and environmental clearances now through, both sides should ensure smooth sailing for the eight million metric ton per annum steel plant in Jagatsinghpur in Odisha.
POSCO had first signed an agreement with the Odisha state authorities in June 2005 to set up the plant on 4,000 acres of land. It is now seeking 2,700 acres to begin the project's first stage, which involves setting up two 4 million mt capacity plants in two phases.
POSCO has said that, if it gets the required land this year, the first phase of the plant may be commissioned sometime in 2018, according to a Reuters report.