Amid reports that Korean steel maker Posco may prefer Brazil over India for its proposed 10 million tonne steel plant, India has pulled out the stops to get the company to put its money in the country.
The Orissa government has offered Posco the option to invest in a deep-water port under construction in Dhamra.
"The possibility has been discussed and is likely to be explored further in the coming months," a state government official told Business Standard.
The $8 billion project is being billed as the largest foreign direct investment ever in India.
Posco is eyeing Brazil since there are a number of ports in the South American nation that can accommodate large vessels required for such a project.
Orissa officials informed Posco that the Dhamra port could take Cape-sized vessels. At present, the port is being developed by International Seaports Authority and Larsen & Toubro.
The state government has also made a case for private-public partnership for linking the port by rail. Orissa has cited the Konkan Railway project as a model.
"The railway line between Bhadrak and Dhamra is receiving the highest priority for implementation from the state government," an official said.
Senior representatives of the state government met Posco executives last week, when the company's CEO & president, Chang Oh-Kam, had come to New Delhi as part of a delegation accompanying South Korean President Roh Moo-Hyun.
The Posco team is known to have asked for an assurance from the state government on adequate water supply for the project.
The state has put together a task force to iron out the hitches related to the project. "The details are likely to be worked out by next month," the official said.
Steeled for combat
What's at stake?
- A 10-mn tonne steel plant from Korea's Posco. But Posco wants to take the $8 bn investment to Brazil, which has ports suited for the project
- Orissa has offered Posco the option to invest in the Dhamra deep-water port. The Central government has assured support to the project
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