South Korea's POSCO, the world's third-biggest steelmaker, said on Tuesday that it would proceed with its USD 12 billion steel plant in Orissa despite the state government halting land acquisition for the project due to opposition by villagers.
6 years on, POSCO's Orissa steel project remains on paper
The state's move is seen further delaying the biggest foreign direct investment in Asia's third largest economy.
"There is no change in our stance on the project. We will proceed," a Seoul-based POSCO spokesman said, adding that it expects the Orissa government to continue talks with residents over land acquisition.
The project by POSCO, is the most high-profile of numerous industrial plans delayed because of protests over land, which analysts warn could hurt economic growth and worsen a current account deficit.
POSCO signed the agreement for the mill in 2005, but the project has been bogged down by protests and inquiries into alleged illegalities at a related mining concession have delayed it. Green clearance from the Environment Ministry in New Delhi only came in January.
It is most likely that the government in Orissa will try to negotiate with protesters and offer better terms for their land needed to build the plant.
source-moneycontrol
steven
management trainee-fundamental analyst
DENIP consultants pvt ltd
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