South Korean iron manufacturing company POSCO is most likely to take over the Central government undertaking Rashtriya Ispat Nigam Limited in Visakhapatnam, better known as Visakhapatnam Steel Plant, in collaboration with Korean car manufacturer Hyundai.
This was indicated to YSR Congress party MP and party general secretary V Vijay Sai Reddy by Union minister of steel Dharmendra Pradhan in Rajya Sabha on Wednesday.
Answering a question as to whether POSCO and Hyundai are planning to set up a Greenfield steel plant with an estimated cost of Rs 30,000 crores on the premises of RINL in Visakhapatnam, the Union minister said POSCO had evinced interest to set up a steel plant in Visakhapatnam on RINL's land.
“A non-binding MoU was signed in October, 2019 between RINL and POSCO. Subsequently, a Joint Working Group (JWG) has been formed for exchange of information. The shareholding pattern has not been determined at this stage,” he said.
However, as per MoU, POSCO wishes to have at least 50% shareholding while the shareholding of RINL would be worked out on the basis of valuation of RINL's in-kind contribution of the land for setting up of the plant, Pradhan said.
The union minister further said a joint team of POSCO and Hyundai along with the Ambassador of South Korea came to India and visited RINL, Visakhapatnam. They participated in a meeting with representatives of RINL, NMDC and Ministry of Steel on 22.10.2018.
Subsequently, a team of officials from POSCO visited the RINL thrice July 7, 2019, September 23, 2019 and February 20, 2020 in connection with setting up of the plant, he said.