SEOUL: Korean steel major Posco’s decade-old plan to build an integrated plant in India received a boost after the company signed an agreement with Mumbai-based Shree Uttam Steel & Power Ltd today for a 3-million-tonne (mt) facility in Maharashtra.
Uttam Steel and Power is owned by the co-promoters of Uttam Galva Steels, which is jointly owned by the world’s largest steelmaker ArcelorMittal.
Two global steel giants, whose mega projects have not taken off in eastern India, are coming together in an unusual alliance for a big steel plant in the BJP-ruled western state of Maharashtra.
The work on a detailed project report (DPR) has started, and construction activity will commence from September 2016.
“We will have 80 per cent stake in the joint venture, while Posco will hold 20 per cent. However, the equity structure may be revisited as we go along”, Ankit Miglani, director of the Uttam Galva group, told The Telegraph.
Posco also signed a memorandum of agreement with Mesco Steel this year for relocating a 600,000-tonne steel plant from South Korea to Mesco’s plant site in Odisha.
Last month, Posco said it has shifted its focus from the Dollars 12-billion proposed steel plant in Odisha, citing “no progress” in the project.
The first phase will include setting up a capacity of 1.5 MTPA, he added. Shree Uttam Steel and Power has so far invested about Rs 1,000 crore in the project, they added. The Company is into the business of procuring hot rolled steel (‘HR’) and processing it into CR and further into GP and Colour Coated Coils.
The Company’s manufacturing facilities are located at Khopoli, in the state of Maharashtra, India, which are close to both Nhava Sheva and Mumbai ports.
With products exported to 148 countries worldwide, the company received 19 consecutive Export Excellence Awards from the EEPC under the commerce ministry.
An investment of about $1 billion is needed to set up a 1-million-tonne-per-year steel plant. The net turnover during the day was Rs. These two projects, too, are facing delays.
