South Korean steel major Posco could be looking at acquisition of plants in India via its strategic alliance with government-owned Steel Authority of India Ltd announced on Thursday in New Delhi.
With Posco?s $12 billion steel project in Orissa stalled by villagers opposing land acquisition, Posco has already rescheduled the start-date to December 2007 from April 2007 earlier. The company had been allotted 4000 acres at Jagatsingpur for the 12 million tonne plant, but has not been able to take possession of the land.
The Union government has cleared Posco?s steel project as well as the associated port from the environment angle. But, with things getting delayed, Posco has cut down the size of its office here and also reduced headcount, sparking speculation that it will put the project on hold.
Following Thursday?s development, industry people said Posco could be planning a backdoor entry into steel-making in India.
For one, SAIL is now in an advanced stage of acquiring Nilachal Ispat Nigam Ltd (NINL), a 1 million tonne project jointly promoted by Central sector star trading house MMTC Ltd and the Orissa government. NINL?s steelmaking facilities over 2500 acres in Kalinga Nagar Industrial Complext at Dubri in Jajpur district is attractive for suitors as it has an iron ore mine in Roida.
Then, SAIL recently merged subsidiary Indian Iron & Steel Co (IISCO) with itself. While IISCO?s plant is vintage stuff, it has the rights to what has considered the world?s second largest iron-ore reserve.
SAIL sources said the pact, among other things, would give it access to Posco?s technology, considered among the best in the world.