BHUBANESWAR: The State Government on Saturday said it would examine the reported proposal of the Centre for a joint venture (JV) between South Korean steel behemoth Posco and the Steel Authority of India Limited (SAIL) for establishment of a steel project near Paradip in Jagatsinghpur district. “We have not been informed about the proposed JV between Posco and SAIL. We will examine it after being properly informed,” Steel and Mines Minister Raghunath Mohanty told mediapersons here on Saturday. The Minister was reacting to the Union Steel Ministry’s reported proposal to Posco for jointly establishing the Rs. 52,000-crore mega steel plant in the State. The Steel Ministry has reportedly given the suggestion to Posco, which signed the MoU with the State Government six years ago for the mega steel plant. “It is up to Posco whether they will implement the project in JV. The State Government will certainly examine it if such a development takes place,” Chief Secretary Bijay Kumar Patnaik told mediapersons here.Even though the project was given final forest clearance six months back, work is yet to start because of strong local resistance. It is now to be seen whether the project will be allowed if Posco enters into a JV with SAIL. Official sources said the Union Steel Minister Beni Prasad Verma is reported to be keen on the JV proposal. Posco had signed the MoU with the Orissa Government in 2005 for setting up a 12- million tonnes a year plant. The proposed plant will be based on Posco’s Finex technology that makes use of iron ore fines while eliminating the need for coking coal in the steel-making process. The State Government has so far acquired 2,200 acres of the required 4,000 acres for the proposed project.
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