Owing to its failure to get land for the proposed 6 million tonne per annum steel project in Karnataka, South Korean steel giant POSCO is considering to quit the project, reports suggest.
The company is unable to get land for the project because of protests by local residents.
Soon, the company would decide on whether to abandon the project, which involves setting up a steel mill in Karnataka. POSCO signed a preliminary agreement with the state in 2010.
POSCO is in the process of enhancing its production capacity overseas to combat competition from firms like Hyundai Steel Co.
Meanwhile, the company is experiencing some progress in its much-delayed $12 billion steel project in Odisha.Earlier, the firm overcame a legal hurdle to the granting of a mining licence for the project. This raises the South Korean firm’s chances of getting preferential access to iron ore. The Odisha project has been delayed for around eight years because of lack of necessary approvals, land and mining licence. This project is said to be the country’s largest foreign direct investment.
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