BL reported that South Korean steel major POSCO, probably frustrated with the opposition in Orissa, has initiated talks with Karnataka government for setting up a steel plant.
As per report, discussions are on between the Karnataka state government and the top management of POSCO and a final discussion in the presence of Chief Minister Mr BS Yeddyurappa is expected to be held in about a fortnight.
The report cited Mr Murugesh Nirani minister for large and medium I industries in Karnataka as saying that “We are confident of finalizing the agreement with POSCO and the discussions are now at an advanced stage.”
As per report, POSCO is expected to invest INR 20,000 crore in a plant to manufacture 4 million tonnes initially and 8 million tonnes after expansion.
The report added that POSCO will have captive iron ore mines in JV with the state government owned Mysore Minerals Ltd.
POSCO’s move comes on the backdrop of recent decision by Arcelorittal. A senior management team from ArcelorMittal has visited five districts Bagalkot, Bijapur, Bellary, Koppal and Dharwad to finalise the location for the steel plant. The company has sought 4,000 acres of land and the state government has agreed to provide the land in any of the five districts. The land will be acquired by the Karnataka Industrial Areas Development Board.
