Seoul: South Korean steel giant Pohang Steel Company (POSCO) has dropped its plan to use the Paradip Port due to its low cargo-handling capacity and has decided to develop a new port, about six kilometres from Paradip instead, at an investment of about US$200mn.

The Paradip port has a capacity to handle about 15,000 metric tons while the company was scouting for a port capable of handling more than 20,000 metric tons.

POSCO was in favour of getting the special economic zone (SEZ) status for its 12 mt steel project to be built at a whopping cost of Rs520bn thereby making it the single largest foreign direct investment (FDI) in the country.