Post News Network
New Delhi, August 25: The state government may offer steel giant Posco the option of a joint venture (JV) with the state-run Orissa Mining Corporation (OMC) as the Centre and state try to salvage the USD-12 billion project — the largest FDI in India so far.
Prime Minister’s Principal Secretary Nripendra Misra Tuesday held a meeting with mines secretary Balvinder Kumar, steel secretary Rakesh Singh, Chief Secretary G C Pati and Posco India CMD Gee Woong Sung on the steps that can be taken to save the project, sources said.
“Both Prime Minister Narendra Modi and Chief Minister Naveen Patnaik do not want Posco to leave India. It was decided during the meeting that Orissa will again talk to the South Korean steel major and look for options that can be leveraged to save the USD-12 billion project,” they added.
The PMO’s intervention comes against the backdrop of the steel major temporarily dropping plans to set up a 12-mtpa integrated steel plant (ISP) in Jagatsinghpur district.
“One of the options available, which the state is mulling, is that Posco can either set up the plant as a JV with OMC or OMC can be given iron ore mines and then Posco can have some arrangement with the public sector undertaking for setting the ISP,” sources said.
Besides, the Centre has also told Posco to try other options like forming a JV with PSUs such as SAIL for setting up the plant.
The proposed project has been stalled for about a decade due to various regulatory hurdles, including delays in land acquisition and mining leases.