25/08/2015 4:36 PM IST | Updated 15/07/2016 8:25 AM IST

Modi's Office To Discuss Speeding Up Posco's Held-Up Steel Plant In Odisha

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Sparks fly as a worker carries out the process of fettling a ladle in the melt shop at the Celsa Steel UK Ltd. steel mill in Cardiff, U.K., on Monday, May 18, 2015. The price of iron ore, used to make steel, has tumbled 44 percent in the past year and touched a decade-long low of $47.08 a metric ton on April 2 amid a supply expansion and uncertain demand in China, the biggest buyer. Photographer: Simon Dawson/Bloomberg via Getty Images

The Prime Minister's Office is likely to take up the issue of steel giant Posco's proposed $10.5-billion integrated steel plant in Jagatsinghpur with the Odisha government and the company officials today.

The PMO has called a meeting, which will be attended by the Cabinet Secretary, Secretaries of Steel and Mines, the Odisha government, and Posco officials, to look for ways to help the South Korean steel maker set up a plant in the country, sources said.

"The meeting is likely to take place tomorrow (on Tuesday). PM wants Posco to stay in India and in this regard, the meeting will find ways to make that happen. The Centre can also suggest a joint venture with Posco to set up a steel plant or a similar arrangement," they added.

The PMO's intervention comes against the backdrop of the steel major temporarily suspending plans to set up an integrated steel plant producing 12 million tonnes per annum (mtpa) steel in Jagatsinghpur district in Odisha, the largest FDI in India so far.

READ: Posco May Scrap Odisha Steel Project After A Decade Of Delays

The proposed project has been stalled for about a decade due to various regulatory hurdles, including delays in land acquisition and mining leases.

Last week, Odisha Steel and Mines Minister Prafulla Kumar Mallick had said the tri-partite meeting involving the Centre, the Odisha government and Posco representatives will be held in New Delhi on Tuesday. Odisha will be represented by its Chief Secretary and the Steel and Mines Secretary.

READ: Korean Steelmaker POSCO Signs Deal With Uttam Steel For New Plant In Maharashtra

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