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Posco to ask Maharastra to improve infra at poropsed steel plant site

Posco to ask Maharastra to improve infra at poropsed steel plant site

Mumbai: South Korean officials said on Thursday they would ask the Maharashtra government to improve infrastructure at the site of Pohang Iron and Steel Co. Ltd’s (Posco) proposed steel plant.

The Posco project in Raigad district is suffering from shortage of infrastructure,"said Seo-Hang Lee, South Korea’s consul general in Mumbai. “We will ask the Maharashtra government to provide a more investment-friendly climate."

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Posco, South Korea’s biggest and the world’s fourth biggest steelmaker, plans to set up three steel manufacturing units in Raigad at an estimated investment of Rs5,200 crore.

South Korean officials were in Mumbai as part of a trade delegation to encourage Indian investment in their country.

Byeong-Cheol Lee, director general for cross-border investment at South Korea’s ministry of knowledge economy, said he planned to speak with Maharashtra industries commissioner Sanjay Sethi on the issue later in the day.

Sethi said on phone the Posco project was facing two issues. One was widening the road around the project site. The second was facilitating last-mile connectivity between Reliance Industries Ltd’s Dahej-Uran gas pipeline and the Posco unit.

The link to the gas pipeline could not be built because the road was yet to be widened, he said.

“We have taken up the matter with the state public works department and are trying to expedite the matter," Sethi said. “We are aware of their concerns and will facilitate a resolution of the both the issues expeditiously."

Maharashtra’s economic survey released in February pointed out that neighbouring Gujarat had surged ahead of it in attracting industrial investment. Maharashtra attracted investments worth 6.95 trillion between June 1991 and March 2010, while Gujarat managed 8.59 trillion, the report said.

aveek.d@livemint.com

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