April 25, 2024

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[THE INVESTOR] POSCO has decided to return public land in Odisha state, India, possibly moving to finally withdraw its plans to build a steel mill there after 12 years of failed talks, according to news reports on March 20.

POSCO India, the local unit, has reportedly recently notified the state government of its intention to return the site after it was levied with real estate taxes worth 820 million rupees (US$12.50 million). 

In 2005, POSCO and the state government signed a memorandum of understanding for the steelmaker’s US$12 billion steel mill project. But the talks have been stalled for more than a decade due to resistance from residents and the local government’s lukewarm support.

Industry watchers said POSCO was giving up the entire plans after a decade-long delay even though the company denied the speculations.

“We are just returning the site that we do not need for now,” a POSCO official was quoted as saying by Dong-A Ilbo.

By Park Yuna (yunapark@heraldcorp.com)