RINL Privatisation Forces POSCO to look for New Plant Locations
RINL PrivatisationNew Indian Express

RINL Privatisation Forces POSCO to look for New Plant Locations

Business Standard reported that Indian government’s move to divest 100% stake in Rashtriya Ispat Nigam Limited has prompted South Korean steel major

Business Standard reported that Indian government’s move to divest 100% stake in Rashtriya Ispat Nigam Limited has prompted South Korean steel major Posco to explore new locations for setting up a steel plant. Business Standard quoted a source as saying "Posco has been exploring investment in India like other global steelmakers ArcelorMittal, but it has not made any progress.”

The South Korean company had planned a joint venture with the RINL. MoU was signed in July 2020 and a joint working group was formed. The POSCO also sought 1,170 acres of Vizag Steel’s surplus land for setting up the plant. Representatives of POSCO have called on Andhra Pradesh Chief Minister Mr YS Jagan Mohan Reddy last week and expressed their willingness to invest in the State. POSCO India group Chairman Managing Director Mr Sung-Lae Chun, Chief Financing Officer Mr Goo Young An, Senior General Manager Mr Jung Le Park and other officers were part of the delegation

Reports also suggest that Mr YS Jagan Mohan Reddy government in Andhra Pradesh had invited Posco to set up a plant in Krishnapatnam, however, the steel major is yet to take a decision. In early March, Andhra Pradesh government has invited South Korean steel maker POSCO’s Indian subsidiary POSCO India Private Limited to establish a greenfield integrated steel plant at Krishnapatnam in the Nellore district of Andhra Pradesh. Andhra Pradesh Special Chief Secretary (Industries and Investment) Mr R Karikal Valaven in a letter addressed to POSCO India Chairman & Managing Director Mr Sung Lae Chun said that the AP government is keen on having the unit at Krishnapatnam while pointing to the interest expressed by the firm on the location. He wrote “AP government envisages that the steel plant at Krishnapatnam will be an anchor industry in driving the economic activity in the region and the state will support POSCO to the best of its efforts. I would like to extend an invite to the delegation from POSCO headquarters at Seoul to confirm your proposal for setting up an integrated steel plant in the land identified jointly by your team and the Government of AP at Krishnapatnam and for further discussion on other required support under the State Industrial Policy.”

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