South Korea’s largest steelmaker Posco warned an Indian state government that it could pull out of a multibillion project to build an integrated steel mill in the eastern state of Odisha, offering to hand back the land plot assigned for the project.
According to Posco Sunday, its Indian operation Posco-India Private Ltd. recently sent a letter to the Odisha Industrial Infrastructure Development Corporation (IDCO) - the state administrator for the project - stating its intention of returning the land lot.
The project faced with opposition from residents and lack of commitment from the local government has made little progress since a memorandum of understanding was signed in June, 2005. Under the terms, Posco would build an integrated steel mill with a capacity of 12 million tons at $12 billion in return for the property and rights to mining and use of port.
“What we have put in so far is not that big. If the Indian state government does not have any will to support, we have no reason to push ahead with the project,” one Posco official said.
By Moon Ji-woong
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]