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POSCO has submitted a revised proposal for setting up an 8 million mt year plant in two phases requiring 2700 acres of land," the government of the Indian state of Orissa has stated in a report submitted to the Indian federal government on the status of South Korea-based steelmaker
POSCO's planned steel project for
India.
As per a memorandum of understanding (MoU) signed with the government of Orissa in 2005,
POSCO had proposed construction of a 12 million mt per year plant entailing an investment of $12 billion. The company has not announced any revised project cost.
A new MoU between
POSCO India, the Indian subsidiary of
POSCO, and the Orissa government will be signed shortly to replace the earlier agreement to formalize setting up the steel production facility with a lower capacity.
The new agreement will also scrap the previous provision of allowing
POSCO India to swap iron ore by exporting low grade Indian ore and importing high grade ore from Brazil.
POSCO India will, however, be allowed to swap ore mined within the country, a state government official said.
As SteelOrbis previously reported, South Korean steel producer
POSCO earlier announced its decision to prune its plans for its new steel plant in
India, and will set up an 8 million mt per year plant in the eastern Indian province of Orissa instead of a 12 million mt per year plant as per the earlier agreement with the provincial government of Orissa.
The move has been prompted by the provincial government's inability to provide 4004 acres of land at the proposed site near the port town of Paradip in the province.