Corrected - POSCO signs deal to set up steel plant in western India

(Corrects company name to Shree Uttam Steel and Power in paragraphs 1 and 3)

MUMBAI (Reuters) - South Korean steelmaker POSCO <005490.KS> has signed an agreement with Shree Uttam Steel and Power to set up a 3 million tonne-per-year integrated steel plant in western Maharashtra state, the Indian company said on Tuesday.

The proposed joint venture plans to set up the steel plant in two phases and take advantage of an expected surge in steel demand in India.

Shree Uttam Steel and Power is owned by the co-promoters of Uttam Galva Steels Ltd , which is jointly owned by the world's largest steelmaker ArcelorMittal .

 

Uttam Galva shares surged as much as 16 percent in morning trade on news of the joint venture.

(Reporting by Aman Shah in Mumbai; Editing by Gopakumar Warrier)