POSCO may revive Odisha investment plan

Visakhapatnam WITH global steel giant POSCO plans for joint venture with Rashtriya Ispat Nigam Limited (RINL) appearing to be bleak following the decision of the NDA Government to go for 100 per cent disinvestment of the Navratna company, the Korean steelmaker has evinced interest to revive its $12 billion steel plant in neighbouring Odisha.

Almost 11 years lapsed after the MoU it inked with Odisha.

The earlier project in Odisha remained a non-starter following regulatory issues and failure to get captive mines in Jagatsinghpur district as per the Mines and Minerals (Regulations) Act, 1957.

POSCO had tried to achieve a foothold over Indian soil by trying to establish steel projects in Maharashtra and Karnataka. After the stake sale in RINL-corporation entity of Visakhapatnam Steel Plant was cleared by Cabinet Committee on Economic Affairs (CCEA) on January 27 along with its subsidiaries and joint ventures, there was also slowdown in the functioning of a Joint Working Group set up at the behest of Ministry of Steel and RINL to go ahead with the MoU signed by the two companies after several rounds of discussions held under the supervision of the Prime Minister's Office.

Initial reports said POSCO was willing to acquire 3,000 acres belonging to RINL near the 7.3 million tonne VSP and establish a high-end special grade steel plant at an estimated investment of Rs 30,000 crore. An RINL official admitted that in lieu of the land to be given to POSCO if the project materialises, the equity of RINL would be finalised.

In a recent roundtable discussion, South Korea Ambassador Shin Bongkil evinced interest for their largest ever single FDI in India in Odisha. He didn't specify further details.

The virtual meet organised jointly by Indian Chamber of Commerce and Industry (ICCI) and Industrial Promotion and Investment Corporation of Odisha Ltd (IPICOL) was attended among others by top officials led by Odisha Industries Minister Dibya Shankar Mishra. The Korean officials also elaborated on their plans to invest in India whereas the Odisha Minister said they were preparing a policy document to explore value addition of various minerals available in their State.

POSCO India CMD Sing Lae Chun has already visited Krishnapatnam to explore setting up an integrated steel plant following an invitation from the Andhra Pradesh Government to offer fiscal and non-fiscal incentives as per the Industrial Policy 2020-23.

While Adani Port has increased its investment in Krishnapatnam Port to 100 per cent, the country's largest private sector port, is also in the process of acquiring Gangavaram Port. Gangavaram Port, developed under PPP mode, is on the backyard of Visakapatnam Steel Plant giving freight advantage for ferrying raw materials and finished products.