Posco close to dumping Orissa steel project

Korean steel maker Posco may look at other destinations if the Orissa government delays giving approval to their proposed 10 million tonne greenfield project in the state.

Talking to the newspersons here today at the Metals 2004 seminar organised by the Bengal Chamber of Commerce & Industry (BCCI), Chang-oh Kang, president, Posco, said, "We are yet to hear from the Orissa government. Even though a working group has been set up to look into our proposal, we are trying to sort out everything."

"We asked the Orissa government for approvals some four months ago, they are yet to get back to us," he added.

Asked whether Posco will think about moving out of Orissa if there is inordinate delay, Kang said, "Let's see how things progress. We would think about second line of action if talks fail."

Sources close to the development said the West Bengal government was keen on such projects and the state could be the second preferred destination for Posco if talks with the Orissa government failed.

Senior officials of industry department of the Bengal government said Posco would be offered every type of infrastructure support in west Bengal if it was interested.

The company may consider setting up its steel plant in other states rich in iron ore and coal if the Orissa government did not provide required infrastructure for its 10 million tonne plant.

Proximity to port and easy availability of raw materials has made Bengal a favoured destination for iron and steel making.

Posco has not ruled out the possibility of looking at Bengal for their proposed project.

It has already tied up with the Australian major BHP-Billiton for the project. Initially, the Korean company plans to set up 3 million tonne capacity plant which will be increased to 10 million tonne. Total investment in the project is $8.4 billion.