India Delays POSCO Plant Construction Permit

The Indian government has again postponed its decision to grant a license to South Korean POSCO to mine iron ore, requesting further clarification from government officials in Odisha, where the South Korean company has been postponing a $ 12 billion steel plant for years. The project has been under consideration for approval for almost nine years.

The Ministry of Mines has asked the state government to provide details on how much land in the iron ore district POSCO is seeking to obtain in order to have a clear picture for final approval of the decision. Since POSCO, even before the start of work on the project, faced tough protests from the local population against the acquisition of land. In addition, the company has been waiting for a long time to obtain a permit for the extraction of iron ore. According to the company, POSCO is interested in building the plant if an agreement is reached on the supply of ore.

Meanwhile, former Prime Minister Manmohan Singh said in January that POSCO's request for a mining license is the final regulatory hurdle for a project that could lead to the largest direct investment in India. Earlier, the South Korean steel giant signed a memorandum of understanding with the Odisha state government for the proposed construction of a steel mill, which expired in 2010.

New Indian Prime Minister Narendra Modi, seeking to revive manufacturing in the country, invites domestic and international companies to invest in Indian industry. But one of his colleagues, the Minister of Tribal Affairs Oram, who hails from Odisha, said he would continue his long-standing policy towards the POSCO plant.