Stalled Posco steel project expected to progress during President Park's India tripUpdated: 2014-01-16 14:29:40 (KST)
Posco's stalled project to build a steel mill in the Indian state of Odisha looks like it's finally back on track, coinciding with President Park's state visit to India.
The Korean steel giant was granted an environmental clearance for the 27-hundred acres of land required for the project and has secured a promise from the Odisha state government that the Korean steelmaker will be granted a prospecting license for an iron ore mine some 300 kilometers from the steel mill.
The details will be confirmed during President Park's bilateral talks with Indian Prime Minister Manmohan Singh on Thursday.
The project was launched in 2005 but has been delayed for roughly nine years due to land acquisition issues and environmental concerns.
"The Korean government says that if the project goes forward as planned, the steel mill in Odisha will be able to start producing steel in eight years, which is in 2022.
It also expects the POSCO project to create some 870-thousand jobs and generate annual sales of 3 billion dollars."
President Park, who arrived in the Indian capital of New Delhi on Wednesday, started her trip by meeting with Korean residents living in the South Asian country.
The president said there are a lot of fields in which Korea and India can create synergy through cooperation, as the two countries each have a unique cultural heritage and are leading nations in advanced science and technology.
In particular, she emphasized the importance of the Korean community in India.
"You should play the main role in expanding cooperation between Korea and India. You should also enjoy the fruits of such developments more than anyone else."
President Park also pledged to seek greater opportunities for Korean businesses in India and reduce the difficulties Korean firms face when doing business in the nation by calling on the Indian government to reduce the restraints on foreign investment.
Eoh Jin-joo, Arirang News, New Delhi.
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