The Hindu : Business : Posco's offer to displaced tribals

Online edition of India's National Newspaper
Thursday, Apr 27, 2006

Business

Business

Posco's offer to displaced tribals

Preference shares as part of resettlement package

HANNOVER: Posco on Wednesday said any rehabilitation and resettlement (RR) package involving preferential shares to the displaced tribals and the employees will be acceptable to the Korean giant, which is putting up a $12 billion mega steel plant in Orissa.

"Although the RR guidelines have yet to be announced by the Orissa Government, we will accept the clause of preferential shares to the displaced people, if it is included in these norms," Posco-India Managing Director, Cho Soung-Sik, told reporters at the Orissa stall in the India Pavilion at the Hannover Fair.

Mr. Soung-Sik said Posco was hoping to get the mining lease for the iron ore from the State Government in the first half of 2007. The company has already been capitalised in India with a total of $250 million.

The first phase of the steel plant will go on stream in 2008 with a four million tonne capacity. The total capacity, to be completed by 2016, will go up to 12 million tonnes.

Of the $12 billion, billed as the largest foreign direct investment (FDI) proposal in the country, Posco would invest $3.8 billion in the first phase. Mr. Soung-Sik said the company was in the process of acquiring land. — UNI

Printer friendly page
Send this article to Friends by E-Mail