Posco's visit to West Bengal steel unit sparks relocation speculation
13 Feb 2010
With prospects for its proposed 12 million tonne steel project in Orissa still uncertain, Korean steel major Posco seems to have turned its attention to West Bengal, raising hopes that the state would see Korea's biggest steel company invest.
On Monday Posco officials visited the Kulti Growth Works of the Steel Authority of India Ltd (SAIL) near Asansol in West Bengal. The company's plant can produce mostly non-ferrous castings as also some steel castings.
According to The Hindu newspaper, which quoted unidentified sources, talks had been held between Posco and SAIL officials. The Kulti Works, which has relieved its entire workforce through a VRS programme, is seen as one of the prized locations for an industrial project in India. The land there is also unencumbered.
Though SAIL officials are reported to have declined to comment, reports quoting unidentified sources said discussions between the two had taken place though matters were at a preliminary stage.
It may be recalled that Posco had signed a memorandum of understanding with SAIL for setting up a strategic alliance
for alignment and cooperation in a wide range of strategic business and commercial interest areas.
However, key officials in the Orissa government discount any possibility the development may impact Posco's Orissa plans. They remain confident that the Korean steel major would not quit Orissa. Posco had signed a memorandum of understanding with the state in 2005, following which, it also entered the fray for a prospecting licence for the Khandahar iron ore deposits.