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POSCO Looks to Return Land for Indian Mill
03/20/2017 - South Korea’s POSCO is offering to surrender the acreage on which it had planned to build a US$12 billion integrated mill in India, a move that seems to put the final nail in the coffin on the long delayed project, according to reports.
According to The Korea Times, POSCO told the Odisha state government that it would like to give up its rights to the acreage after it was asked to pay more than US$10 million in taxes and other expenses.
Ther project has been in the works since 2005, when POSCO and the Odisha government announced they had signed a memorandum of understanding on the plant, which would be capable of annually producing 12 million metric tons of crude steel.
The project, however, has been delayed due to local opposition and new government regulation.
Although giving up the land would seem suggest that POSCO has ended the project, a company official, who was not identified, told The Korea Times that it’s still a possibility.
"The site has not been used for a long time, so we figured it would be better used for other purposes until we resume the project," the official said. "This doesn't mean we have completely given up. When the conditions are right, we will definitely restart the project.”
