POSCO India - History - Odisha

Odisha

According to the MoU of 2005, POSCO agreed to invest in the Jagatsinghpur district of Odisha to establish an integrated plant to manufacture steel, mine iron ore and other ores, as well as the infrastructure necessary for its operation in Odisha. The MoU listed the following understanding between POSCO and the state of Odisha:

• Establish a FINEX/BF plant in phases. The first phase would be completed in two modules, together attracting a total of Rs. 21,800 crores ($5.1 billion) investment. The first phase would produce 6 million tons per year of crude steel, and 5.64 million tons per year of finished steel. The MoU mentioned a second phase, also to be completed in steps of two modules, together attracting a total of Rs. 21,500 crores ($5 billion) investment. The second phase would double the plant's capacity to 12 million tons per year of crude steel, and 11.28 million tons per year of finished steel.
• The state of Odisha promised to be a partner in development. The state agreed to acquire and provide three land parcels to POSCO: about 25 acres (10 ha) of land in Bhubaneswar for POSCO India to establish its Indian headquarters; about 4,000 acres (1,600 ha) in the state of Odisha to set up a steel plant, build port infrastructure, establish a storage yard for coking coal, and other associated facilities; and, about 2000 acres of land for POSCO to develop a township, recreational activities and all related social infrastructure - of which approximately 1,500 acres (610 ha) would be identified adjacent/near to the Steel project and remaining 500 acres (200 ha) near the mining location.
• The state of Odisha agreed to work with the central government of India to arrange necessary supplies and infrastructure for steel production by POSCO India. These supplies included water, electrical power, drainage and sewerage, licenses and permits to obtain coal and iron ore, rail links, and a highway road connection.
• POSCO India agreed to conduct a rapid Environment Impact Assessment (EIA) and prepare a detailed EIA Report and an Environment Management Plan (EMP) for the Project. The Government of Odisha agreed to provide any assistance requested by the Company during the time the EIA is conducted and the EMP is prepared. The state of Odisha also agreed in the MoU to use its best efforts to procure the grant of all environmental approvals and forest clearances from the central government of India within the minimum possible time for the project.

As of June 2012, controversies and regulatory delays have prevented Posco India's Odisha project to proceed beyond the concept. Posco India has no mining or manufacturing operations in Odisha