Indian state-run steel producer Rashtriya Ispat Nigam Limited (RINL) has officially denied reports of it paying $1.35 billion to South Korean steelmaker POSCO towards its proposed joint venture with the latter, a company statement said on Monday, November 30.
“There is no proposal or budgetary provision of making any payment to POSCO by RINL,” a clarification statement issued by RINL indicated.
“A non-binding memorandum of understanding (MoU) has been signed between RINL and POSCO to set up a plant to produce high quality steel projects, wherein it is proposed that the land required would be provided by RINL and discussions are at a nascent stage,” the RINL statement said.
Trade unions operating at RINL have been opposing the joint venture with POSCO, alleging that it was a move towards handing over existing assets of the Indian company to the South Korean steel major and that RINL would need to make payment to the latter at a time when RINL itself is making losses.