Bhubaneswar: South Korean steelmaker Posco on Friday told the National Green Tribunal (NGT) that it would not be able to set up a $12 billion steel plant in Odisha by July 2017, as the construction is yet to begin. Regulatory hurdles have pushed back the project, billed as India's biggest foreign direct investment, for more than a decade.
Posco’s lawyer said after a hearing in the NGT that the company has not been able to obt-ain forest and other clearances while its environmental clearance is valid until July 2017. Posco could scrap plans for the Odisha project after a new law made it costlier to source iron ore for the plant. Steel prices have also dipped due to overcapacity.
Meanwhile, after meeting Odisha Chief Minister Naveen Patnaik, South Korean ambassador Cho Hyun said his country has many other things to offer, not just Posco.
While stating that South Korea is in favour of more investment in India, Mr Hyun said the South Korean government will honour Pos-co’s decision which will be on their commercial consideration.
