POSCO''s Orissa steel plant to start production by 2011-end

20 August 2007

Mumbai: South Korea''s POSCO, which is building a $12-billion steel complex in mineral-rich Orissa, is likely to start production by the end of 2011.

POSCO''s troubled project in eastern India is now making progress and the plant should begin production by the end of 2011, steel secretary R S Pandey said.

The project ran into trouble after locals protested against plans to compulsorily acquire their land, which they say, could displace up to 20,000 people.

"The POSCO project is now making some headway. The production should start by end of 2011," Pandey said.

The government gave environmental clearance for the plant this month and has also agreed to allow POSCO set up a captive port. However, the government returned the company''s application for an iron ore-mining lease as it was incomplete.

"We will begin construction work of our 12 million tonnes project in Orissa''s Jagatsinghpur district by October on whatever land we have acquired so far," reports quoted POSCO India chairman Soung Sik Cho as saying.