POSCO open to exploring partnership for greenfield mill project in Odisha

Wednesday, 21 April 2021 10:59:17 (GMT+3)   |   Kolkata

South Korean steelmaker POSCO, which has revealed plans for constructing a $12 billion greenfield steel mill in the eastern Indian state of Odisha, is open to exploring opportunities to undertake the project in partnership with a domestic or international investor, an Odisha government official said on Wednesday, April 21.

POSCO’s plans for a steel project were disclosed during a roundtable business conference organized by the Indian Chamber of Commerce (ICC) and the Odisha government in the presence of the South Korean ambassador to India.

The government official said that, though the details of the project are yet to be officially disclosed by the South Korean steel major directly, it has been learned that the latter is exploring opportunities for a partnership with an Indian or global steel major for the project.

He said that the model of ArcelorMittal Nippon Steel Limited (AMNS), in which ArcelorMittal and Nippon Steel formed a joint venture to bid for the stressed assets of Essar Steel and acquired the latter through the resolution process under the Insolvency and Bankruptcy Code.

According to the official, though collaborating through a joint venture to establish a greenfield steel mill project is “more challenging” for all partners, much will depend on the facilitation offered by the Odisha government in terms of offering suitable land and raw material linkages with mines in the state.

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