Posco gives another hint on shelving Odisha project

Bhubaneswar: Amidst uncertainty over the proposed mega steel project by the South Korean steel major Posco near Paradip in Jagatsinghpur district, the company has given yet another hint on shelving its project in the state.

This came to the fore at a press briefing by chief secretary GC Pati after the State Cabinet meeting at the State Secretariat here on Monday.

The chief secretary informed that the Cabinet has approved the proposal of the General Administration department to take back 1.7 acres of land it had allotted to Posco for construction of its guest house in the state capital.

It may be recalled that Posco had freezed its proposed project in Odisha in July this year due to delays in various regulatory approvals.

Posco chairman and CEO Kwon Oh Joon, while confirming this, had said the company has decided to tentatively suspend the Odisha (India) project due to lack of any progress.

Giving its first signal, the company later closed down its corporate office in Bhubaneswar.

Besides, the intention of the company was further consolidated after signing a MoU with Shree Uttam Steel and Power Ltd, a part of Uttam Galva Group on August 11, to set up an integrated steel manufacturing facility under a joint venture arrangement in Maharashtra.

Asked about the issue, Industries minister Debi Prasad Mishra said the chief minister has already taken up the matter with Union Finance minister Arun Jaitley and requested to convene a meeting at the earliest.

“The outcome will be known after the meeting,” he said while replying to a question on whether he is still hopeful about the project.