POSCO rethinks India plans due to delay in steel project

24 Mar 2007

New Delhi: South Korean steel giant POSCO is reviewing its investment plans in India while looking at other options in South-East Asia. The company is believed to be actively considering shifting to Vietnam, which has a huge potential market and an investment friendly climate.

The world's third largest steel maker is understood to be worried over delays in getting approvals for its Rs52,000 crore steel investment in Orissa announced in mid 2005.

The steel maker has told the centre and the Orissa government that if matters were not sorted out within the next two-three months, then it could re-consider its investment plans in the country.

The Korean company wants a categorical assurance from the government on various issues pertaining to its 12-million tonne project and wants the state government to clarify its stand on the project.

Ku Taek Lee, CEO, Posco had a meeting with commerce and industry minister Kamal Nath today to discuss the progress on the approvals for its project.

POSCO had signed an MoU with Orissa government in June 2005, but the project has faced stiff resistance from the local population at its project site in Jagatsinghpur district. The protesters allege the company wanted to acquire the land at a throwaway price.