POSCO puts Rs 51,000 cr Steel Plant Project in Odisha on Hold

South Korean steel giant POSCO has finally decided to put the Odisha project on hold, citing non-implementation and uncertainty over land acquisition and mining lease. POSCO CEO Kwon Oh-Joon, broke this news at a press meet in Seoul.

Kwon Oh-Joon listed the above reasons, while making it clear that its India dream is not over. It’s not clear whether the steel giant will pursue the project in Odisha or not. POSCO may still try to relocate this project to any other favourable destination in India.

MoU for the 12mt mega steel plant project in Odisha’s Jagatsinghpur district, was signed in 2005. However, the land acquisition process could not be completed due to stiff opposition from POSCO Pratirodh Sangram Samiti (PPSS) and other groups. POSCO wanted 4,000 acres of land, but has received 1,703 acres even after 10 years.

Posco India has already written to Odisha Industrial Infrastructure Development Corporation (IDCO) stating that it would vacate the office on the 5th floor of Fortune Towers. This is clear signal that the steel giant is in the process of making an exit from Odisha.