Posco and SAIL to sign a MoU
State-run steel company, Steel Authority of India (SAIL) and South Korean major, Posco are expected to sign a Memorandum of Understanding (MoU) very soon.
As per the MoU, the two companies would be starting a 5 MT of integrated steel plant in Jharkahnd. The total cost involved in this project is expected to be Rs. 25,000 crore.
Posco is going ahead with the plan even though its Rs. 54,000 crore worth of project is in shackles in the state of Orissa. The total capacity of the plant is said to be 12 MT.
Talking about the project, steel secretary Atul Chaturvedi told to a private newspaper, The Indian Express that the two companies have set up a joint study group. This would be assessing the conditions and will do a full due-diligence study of the factors involved in it.
He further said that the top management of Posco is already in talk with Steel Ministry and it would be very soon that some decision is taken.
Vikas Sharan, Senior VP of Posco India informed the press that some agreement can be reached within three month's time. He also said that the Korean company will continue with its Orissa project.
