Posco India’s proposal for setting up a steel plant in Karnataka will not affect the company’s project in Orissa. “The Karnataka plan is independent of the Orissa project,” a company spokesperson clarified. “The Karnataka venture is different from the Orissa project,” he said. The Karnataka project is of 6 million tonne and the investment will be in the range of Rs 32,300 crore, he added.
The Posco proposal was on invitation by the Karnataka government, he said. The Karnataka government has accorded clearances to Posco’s project proposal along with ArcelorMittal’s steel plant. ArcelorMittal too is setting up a 6 million tonne project with an investment of Rs 30,000 crore.
Earlier, ArcelorMittal had clarified that its Karnataka venture had nothing to do with the Orissa project. The LN Mittal company has, in fact, given a written commitment to the Orissa government that it is committed to its steel project in Orissa. The company is proposing to set up a 12 million tonne steel plant with an investment of Rs 40,000 crore in Orissa. Posco’s announcement of the Karnataka project sent Orissa industry circles into a tizzy.