Fair
25°CTue :Mostly Clear. High: 31 Low: 22

POSCO scraps $5.3 billion steel project in Karnataka

POSCO scraps $5.3 billion steel project in Karnataka

Bhubaneswar: Steel major POSCO on Tuesday announced it has decided to scrap the proposed 6 million tonnes steel plant in Karnataka, following long delay in land acquisition and adverse market conditions.

“With the given market conditions and significant delay in acquiring the required land in Gadag, we have decided to close our proposed 6-MTPA (million tonnes per annum) steel plant in Karnataka,” POSCO India Chairman and Managing Director Yong Won Yoon said in a statement.

“We highly appreciate the Industries Department (Government of Karnataka) and KIADB (Karnataka Industrial Area Development Board (KIADB) for their co-operation and cordial support in this regard,” Yoon said.

“In future, if we get an attractive business proposal from the state, we may consider it and return to Karnataka,? the POSCO India CMD said.

POSCO had signed an MoU with the Karnataka government at a Global Investors Meet in Bengaluru in June, 2010 to set up a steel plant with annual production capacity of 6 million tonnes in the state, the company statement said.

Subsequently in January 2011, POSCO finally zeroed in on Gadag to set up the proposed steel plant and notified KIADB accordingly, it said.

The hearing was held with the land owners in June, 2011. However, progress on land acquisition was held back due to agitation by some farmers and religious leaders and finally, land acquisition was halted in July, 2011.

In addition, the mining scam in the state made the project progress even “stagnant”, the statement said.

Hence, considering the “significant delay” in the project and inability to get land in Gadag, POSCO finally decided to close the project in Karnataka.

“Consequently, in June 2013, KIADB and POSCO cordially agreed to end this project. However, both will positively consider any good future opportunity for investment,” the statement said.

On July 1, 2013, KIADB officially returned Rs 60 crore to POSCO, which was deposited as initial payment for land acquisition in 2010, it added.

 

Top Stories

AAP_Confrence1_ShrutiDhapola

Delhi: BJP, Congress running away from fresh Assembly polls, says AAP

July-21-2014
New Delhi: Aam Aadmi Party on Sunday claimed that BJP was “running away” from fresh elections in the national capital and also
katju

Parties question timing of Katju’s charges, demand probe into allegations

July-21-2014
New Delhi: Markandey Katju’s charges that three ex-Chief Justices of India had compromised in giving extension and elevation to an additional judge
x21-sanjusamson-cl-600.jpg.pagespeed.ic.4mBiJ-RME7

India A lose to Australia A

July-21-2014
DARWIN, July 20 (PTI): Sanju Samson’s valiant 81-run knock was overshadowed by Kane Richardson’s five-wicket haul as India A today lost by
Alia_Bhatt_at_the_DVD_launch_of_'Highway'_(cropped)

Alia Bhatt signs Shaandar; pairs up with first love Shahid Kapoor

July-21-2014
Alia Bhatt has signed Vikas Bahl’s Shaandar and will pair up with Shahid Kapoor, who is claims was her first love at
iphone5sbeatsgalaxys5insalesdominatesmarketh_1405936545_980x457

iPhone 5s Beats Galaxy S5 In Sales, Dominates Market

July-21-2014
Things are not going as expected for smartphone maker Samsung. Galaxy S5 was hailed as being the coin of fortune for Samsung,
1396984570-388

Markets end higher led by RIL on robust Q1 earnings

July-21-2014
Markets gained for the fifth straight session on Monday amid encouraging first quarter earnings from index heavyweights Reliance Industries and HDFC. Meanwhile,