South Korean steel maker Posco’s Indian arm is reducing its proposed steel-making capacity by one-third in the first phase of its $12 billion steel plant to get necessary clearances following a delay of more than eight years to set up the factory.
“Originally, you know, the proposal was for a 12 million tonne per annum steel plant,” said Gautam Bambawale, joint secretary in the ministry of external affairs in charge of East Asia. “The current proposal is for a 8 million tonne steel plant and it requires 2,700 acres of land which has already been acquired by the government of Odisha and with the environment clearance being extended (for five years)... I think now the project is all set to move forward and go ahead,” Bambawale told reporters in New Delhi.
Another official later added that the plant capacity of eight million tonnes would be scaled up to 12 million tonnes in the next phase “once land and other clearances are available”.
The officials were speaking to reporters ahead of the visit this week by South Korean president Park Geun-hye to New Delhi and Bangalore.
Billed as India’s largest foreign direct investment, Posco’s plan to build a steel plant in Odisha had waited almost two years for the sign-off after the nation’s pollution watchdog suspended approvals in 2012. But last week, the environment ministry revalidated environment approval for the project in Odisha, Posco India spokesman I.G. Lee told Reuters.
Posco’s plant is among projects valued at $160 billion that remain stalled a year after Indian Prime Minister Manmohan Singh set up a panel to accelerate investments.
Park, who took office last year to become South Korea’s first female leader, will visit India from 15 January to 18 January. This is the first visit by a South Korean leader to Asia’s third biggest economy since 2010, when her predecessor Lee Myung-Bak was in New Delhi as the chief guest at India’s Republic Day Parade.
“We do hope that Posco India will commence the project very, very soon,” Bambawale said.
Referring to the trade imbalance that has crept into bilateral commerce following the two sides tying up a Comprehensive Economic Partnership Agreement (CEPA) in 2009, Bambawale said India would press South Korea for more access for Indian products to bridge the deficit. Bilateral trade in 2012 was $18 billion according to Indian foreign ministry statistics.
Park would be accompanied on the visit by three ministers—the foreign minister, trade minister and the minister for science and technology.
Source:- livemint.com
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