Government wants SAIL to join the Psoco project

Government wants SAIL to join the Psoco project The government wants the state-owned Steel Authority of India Ltd (SAIL) to partner South Korean steel giant, Posco in its proposed $12-billion steel plant in the Indian state of Orissa.

Mr Beni Prasad Verma, the Steel Minister informed Posco officials here on Wednesday that it wants SAIL to become a part of the project, which has faced severe hurdles and delays. Y. W. Yoon, Chairman and MD, Posco India Pvt Ltd has said that he will convey the government's intention to the board of Posco.

Posco was able to receive environmental clearance following much controversy and protests in January this year after six years. The company, which is among the biggest steel makers is the world, had signed a memorandum of understanding with the Orissa Government in 2005 for setting up a 12 million tonnes a year plant in the state.

The new plant will be based on Posco's Finex technology, which uses iron ore fines instead of relying on coking coal in the steel making process. The Orissa Industrial Infrastructural Development Corporation has already acquired 2,200 acres of the required 4,000 acres of land for the project.