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POSCO shelves Odisha project

Friday, 17 Jul 2015
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Posco India has put on hold its ambitious integrated steel project on hold.

 

The South Korean steel giant Posco proposed to set up a 12 million tonne per annum capacity steel plant in Odisha way back in 2005. Opposition from local tribals, environmentalists, delays in various regulatory approvals frustrated the Korean steel major to shelve the project.

 

Odisha government signed an MoU with Posco for the steel plant project on 22 June 2005. Of the total investment of $12 billion, around $2 billion was to be spent on developing supporting infrastructure like roads and ports.

 

Posco chairman and CEO Kwon Oh Joon said “We are tentatively suspending the Odisha project due to lack of any progress, business conditions at home and abroad have changed due to drop in global steel demand, growing deficit of subsidiaries, which have led us to come to a conclusion that we must step up our reform efforts”.


More Project Info:
Integrated Steel (Paradip) Project - Phase I

 
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