Steel Giant POSCO India to take 4.5 years for commissioning Odisha plant owing to clearances, constructions, testing, leases and mines development.
Bhubaneswar: The Indian subsidiary of South Korean Steel Company POSCO, POSCO India has estimated that it’ll take 4.5 years to commission its 8 MnT pa project at Jagatsinghpur district in Odiaha. Similarly, it will need 7 years to start production from the Khandadhar mines in Odisha that was recently recommended by the state government for grant of mining lease on behalf of the company. The company has sent a statement to the state government on the possible timeline of its steel and mining project in Odisha.
After obtaining NGT clearance and revalidation of environment clearance, it will take around 18 months for land filling which will be followed by construction activities of the Steel plant for another 2 years. After that 1 more year is required for commissioning and testing of the plant, stated POSCO India.
The company will need 4 years for commencement of 1st phase of mining operation which includes 3 years for processing mining lease including forest and environment clearance and another one year for first phase mines development. The mines can be fully operational in another 2 years thereafter, as informed by POSCO India. During the gap of commissioning and production from mines, the Steel major might have to arrange Iron ore on its own.
Optimistic about progress of POSCO India’s INR 520 billion Greenfield Steel project, State Government on 11 January said, it would sign a fresh tripartite agreement with the South Korean Steel major as the validity of the original MoU lapsed three years ago. “The State Government will sign a fresh agreement with POSCO and POSCO-India, for setting up the proposed mega Steel mill near Paradip”, said Steel and Mines Minister Rajani Kant Singh, while describing the Center’s environmental clearance as a positive sign for the country’s biggest FDI project. Though the State Government had signed the MoU with Posco-India way back in 22 June, 2005; its tenure lapsed after 5 years on 21 June, 2010. Since then, there is no formal MoU with POSCO for the proposed plant. Singh said that the fresh agreement would be signed based on a guideline given by the Center.