South Korean steelmaker POSCO has faced further delays in its plans to invest $12 billion in an Indian steel plant to be built in the eastern state of Orissa, according to media reports. India's National Green Tribunal has released a directive suspending the environmental clearance granted to POSCO.
The steel project first announced in 2005 would be the largest foreign direct investment in India.
Regarding the decision of the National Green Tribunal , the Associated Chambers of Commerce and Industry of India (ASSOCHAM) is worried that the suspension of the clearance will have an adverse impact on the future investment climate.
"The government should have long-term and transparent policies if India has to seek foreign investments for double-digit GDP growth," said ASSOCHAM's secretary general D.S. Rawat. "Otherwise, the confidence among foreign investors will be undermined," he added.