POSCO INDIA Company Profile

Introduction
POSCO India Private Limited is a subsidiary of POSCO, the worlds fourth largest steel producer and
one of the most competitive steel companies
POSCO-India Pvt. Ltd. was incorporated on 25th August 2005 with the Registrar of Companies,
Odisha, under the Companies Act 1956
POSCO signed a Memorandum of Understanding (MoU) with the Government of Odisha in June
2005, to set up a 12 MTPA green field steel plant at Jagatsinghpur District (10 km south of Paradip
Port), Odisha, with an estimated investment of USD 12 billion (Rs 52,000 crore). The company will
build a 4 million-ton per annum capacity steel plant in Odisha, during the first phase of its project
by 2016-17, and expand the final production volume to 12 million tons per annum. Phase II will be
completed three years after completion of Phase I; and Phase III will be commissioned within three
years after Phase II
The project will include iron ore mine development over 30 years (total 600 million tons) at captive
mines located in the Keonjhar and Sundergarh districts of Odisha, as well as development of
related infrastructure
POSCO India has applied for PL (Prospecting License) for three areas and ML (Mining Leases) for
two areas in the districts of Keonjhar and Sundargarh. After obtaining grants followed by some
prospecting operations, the company will identify the exact mines
Iron Ore Requirement - 20 million tons of iron ore per annum, for annual steel production of 12
million tons over 30 years
The transportation of iron ore from the mines to the plant area will be via roads, combined with
railways. During Phase I of the project, POSCO India will construct railway sidings in the mining
areas and the plant site and link it to the main railway line
A Captive Port will be developed at the mouth of the Jatadhari River, 10 km from Paradip, for
exclusive use by POSCO India in order to secure consistent and timely movement of raw materials
and products
POSCO India has plans to set up a Captive Power Plant (CPP) with an estimated capacity of 1300
MW per annum, and will install a power transmission facility to receive power from the Paradip
GRIDCO substation to meet the requirements during construction period
Water for the steel plant will be sourced from the Jobra Barrage of the Mahanadi River. The total
industrial water requirement is 3.50 cubic meters per second
Progress so far

2005 June MoU signing between POSCO and Govt of Odisha

2007 July Environmental Clearance for setting up the steel plant
2008 August Supreme Courts approval for Forest diversion of plant site
2009 January State Govt.s recommendation of PL for Khandadhar Mines to Centre
2010 May Land evacuation and Removal of betel vines started
2010 July Odisha Govt lost the case of mines recommendation at Odisha HC
2010 August MoEF stopped land evacuation work by Odisha Govt
2011 January MoEFs conditional approval after the Meena Gupta Committee report
2011 May MoEFs final approval for Forest conversion
2011 September Odisha High Court ordered Status Quo on Private land acquisition
2012 March NGT suspended additional conditions of Jan 11 on the ECs but kept the ECs intact
2013 February Odisha Govt. resumed Land evacuation of Govt land (later stopped in July 13)
2013 May Final Verdict on PL case by Honble Supreme Court in favour of Odisha Govt and POSCO
(Central Govts Approval in-progress now)

POSCO INDIA Company Profile

Milestone
March, 2012
POSCO-India held a Seminar on India Project at HRDC Center in Paradeep and invited
Commercial Attach of Korean Embassy, leading global equipment suppliers and
construction companies such as SMS, VAI, MHI, Sharpoorji & Pallonji, Mukund etc who
showed high interests in the POSCO's projects.
Dec 2011
Odisha Project Site Office opened
May 2011
The Union Ministry of Environment and Forests (MoEF) gave the final Forest clearance to
Posco Integrated Steel Plant in Odisha
January 2011
The Union Ministry of Environment and Forests (MoEF) gave the final Environment clearance
to Posco Integrated Steel Plant in Odisha
Jan 2009
Govt. of Odisha recommends PL for Khandadhar mines to POSCO-India
Nov 2008
Ac.313 nonforest govt. land leased to POSCO-India
Aug 2008
Forest Diversion Clearance by Supreme Court on 8th Aug
Feb 2008
Field enquiry along with boundary demarcation by GoO at POSCO-India plant site area
Jan 2008
Transit camp constructed for displaced families
Oct 2007
Ac. 193 of non forest Govt. land was leased to POSCO-India
Jul 2007
Environmental Clearance for 4MTPA steel plant and captive power plant (400 MW) obtained
May 2007
Union Ministry of Environment & Forest approves construction of captive port proposal
Apr 2007
Public Hearing for EIA clearance for 4MT steel Plant construction & Captive port at Jatadhar
Mar 2007
Empowered Group of Ministers approves SEZ status
Dec 2006
Govt. of Odisha recommends GoI to sanction PL to POSCO-India for Khandadhar

POSCO INDIA Company Profile

Oct 2006
MoU with RVNL for Railway SPV from Haridaspur-Paradip
Sep 2006
Govt. of India gives in-principle approval for SEZ
Aug 2006
Govt. of Odisha recommends for CRZ & EIA Clearances for the port
Aug 2006
Kujang R&R office opened
Aug 2006
Government of Odisha recommended POSCO-Indias SEZ Proposal to the Government of
India
Jun 2006
1,135 Acres of Government Land Approved
Jan 2006
Paradip construction office opened
Dec 2005
Application submitted for Captive Port development at Paradip
Dec 2005
POSCO Board of Directors gave its official approval for the first phase of the POSCO-India
project
Nov 2005
Land acquisition was approved by the Odisha State Government
Sept 2005
Application was submitted for Prospective License for iron ore
Sept 2005
POSCO paid capital of USD 51.3 million (Rs. 237 crore)
Aug 2005
POSCO-India Pvt. Ltd was incorporated in Bhubaneswar
Jun 2005
MoU for USD 12 Billion project was signed between POSCO and the Government of Odisha
Oct 2004
An agreement between POSCO and the Government of Odisha to enter into a Memorandum
of Understanding (MoU) was discussed at the India-Korea Summit meeting
Aug 2004
Investment Proposal was initiated with talks between POSCO and the Government of Odisha

POSCO INDIA Company Profile

Note Please find inside story of the POSCO Odisha project by clicking http://poscoindia.com/website/project/inside-story.htm
Other Projects

POSCO India Pvt. Ltd.

POSCO Maharashtra Steel Pvt. Ltd.
POSCO India Pune Steel Processing Centre Pvt. Ltd.
POSCO India Delhi Steel Processing Centre Pvt. Ltd.
POSCO India Chennai Steel Processing Centre Pvt. Ltd.
POSCO & SAIL to set up R18K-cr integrated plant in Jharkhand (POSCO 51%, SAIL 49%) http://www.steelgroup.co.in/ViewNews.aspx?id=1028

Conclusion note
Project was stuck due to stiff opposition to land acquisition & delays in securing permission
to mine; PL for Khandadhar mines has run into litigation and procedural problems over the
past eight years.
Steel Project got environmental clearance in January 2014.
The MoEFgranted the environmental clearance to the steel plant by delinking from the
proposed capti ve port project at Jatadhari. Environment clearance for the port is pending.
Recent changes to India's mining laws may further delay the company's access to iron ore.
POSCO scaled down the project size to 8-million tonnes from 12-million tonnes a year as it
was unable to get possession of the required land.
However POSCO wont abort odisha steel plant.
POSCO is very keen to invest in Gujarat and Maharashtra - http://www.businessstandard.com/article/current-affairs/posco-ceo-calls-on-modi-to-discuss-investment-plans115012001359_1.html
Source
http://timesofindia.indiatimes.com/india/Fresh-mining-jolt-to-Posco-Centre-seeksclarifications/articleshow/44890841.cms
http://www.poscomaharashtra.com/CompanyProfile.aspx
http://posco-india.com/website/press-room/press-release.htm