Posco plant to begin operations by 2011-end

The government today said South Korean steel giant Posco's proposed 12 million tonne steel plant in Orissa is expected to become operational by end of 2011 - nearly a year behind the original schedule.

"The government expects Posco to start commercial production by 2011-end, which is one year behind the initially planned start," Steel Secretary R S Pandey told PTI today.

Posco, which is also the world's third largest steel maker, had earlier said that it would start construction of the plant in Jagatsinghpur district in October.

"We will begin construction work of our 12 MT project in Orissa by October on whatever land we have acquired so far," Posco India Chairman and MD Soung Sik Cho had said.

Posco recently received environmental clearance for the project. The Centre had also asked Orissa Chief Minister Naveen Patnaik to take the mega investment process forward.

"Things are now looking much brighter. We have also received the official nod for our captive port project at Jatadhari, which has also encouraged us," Cho pointed out.

The Korean steel giant has decided to begin construction work initially on 400 acres of non-forest land, and then on the revenue land to be given to it by the Orissa government.

"Now, the only issue remains to be resolved is granting captive iron ore mines to us. But here also, I believe things are moving in the right direction," Cho said.