Pohang Iron and Steel Company, the world’s fourth largest steel maker, is engaged in negotiations with the Maharashtra government to set up a downstream steel plant in the state, a top government official said today.
He, however, declined to reveal any details regarding the project.
“Talks are on with Posco but it is too early to give out any details,” AM Khan, principal secretary of industries for Government of Maharashtra, said today.
There were media reports that the South Korea-based company is considering Maharashtra for setting up a downstream steel plant which could either be a galvanising plant, automobile steel plate making plant or some other steel processing centre.
Ko Min-jin, a company official from South Korea, said that nothing concrete has been decided so far and that talks with the state government are in nascent stage.
She, however, declined to reveal any details regarding the investments envisaged for the unit.An official with the company’s Indian arm, Posco India, on the other hand, said he is unaware of any such developments.
“As per our information, we don’t have any such plans,” the official said.
The company is now concentrating on its 12-million-tonne Orissa project than on setting up downstream industries, he added.
The Rs 52,000-crore project is facing delays due to the local opposition to land acquisition and allegations of diversion of forest land.
The company is also awaiting the Centre’s approval for the prospecting licence for Khandadhar captive iron ore mines.
However, the official said that opposition to the plant is fading. He expressed hope that the work will start soon.
Posco produces 2.75 million tonne of crude steel a month.
