POSCO interested to set up steel plant on RINL’s land in Vizag: Centre

South Korean steel manufacturer, POSCO, has shown interest to set up a steel plant in Vizag. Referring to a question by MP Vijayasai Reddy, Union Steel Minister Dharmendra Pradhan said that a non-binding MoU has been signed in October 2019, between the Rashtriya Ispat Nigam Limited (RINL) and POSCO.

Earlier, the YSRCP MP and Rajya Sabha member, Mr Reddy, has inquired whether POSCO and Hyundai are planning to set up a greenfield steel plant at an estimated cost of Rs 30,000 crore in the premises of the RINL in Vizag. The Union Steel Minister, in a written reply to the query, on Wednesday, admitted that POSCO has evinced interest to set up a steel plant in Vizag on RINL’s land.

Shedding light on the shareholding pattern of the proposed steel plant in Vizag, the Union Steel Minister said as per the MoU, POSCO will hold at least 50 percent shares while the stakes of RINL will be worked out on the basis of valuation of RINL’s contribution for the land in setting up the plant. In this regard, a joint working group has been formed for the exchange of information.

Mr Pradhan further shared that a joint team of POSCO and Hyundai along with the Ambassador of South Korea to India, had visited Vizag and participated in a meeting with the representatives of RINL, NMDC, and Ministry of Steel on 22 October 2018. Subsequently, officials from the South Korean company visited the RINL thrice on 9 July 2019, 23 September 2019, and 20 February 2020 in connection with setting up the plant, he added.