Economic value add of project to be $278bn: Posco

South Korean steel major Posco today said the proposed 12 million tonne steel plant in Orissa would result in an economic impact of Rs 12,33,208 crore ($278.6 billion) if taxes and royalty income for the central government as well as the state government were taken into account.

'A total of $278.6 billion is the projected economic effect of the project considering taxes and royalty incomes for the central government as well as the government of Orissa,'' an official release issued here said after the 38th shareholders meeting held at the Posco centre in Seoul.

"Since the signing of the MoU in June 2005 and the setting up of Posco's Indian subsidiary in August, the company had made an investment of Rs 227.56 crore ($51.3 million) in the project," Ryuho Chan, senior general manager of Posco, said.