Posco's $12 billion Odisha plant to take off soon

South Korean steel maker Posco's $12 billion Odisha plant is likely to start production soon as the government is taking all possible steps to expedite the project stalled for more than eight years, Commerce and Industry Minister Anand Sharma said Wednesday.

Talking to reporters after meeting his South Korean Commerce Minister Sang-jick here, Sharma said the project will be developed in two phases and the first phase is likely to take off soon.

Asked about the timeframe, Sharma said: "No, I cannot give you that. We will do everything possible to have it expedited." He said total projected investment by Posco for its Odisha plant is more than $12 billion. "I think the stage one itself will attract substantial - over half of the projected investment," he said.

Sharma discussed the developments related to the stalled project with his South Korean counterpart. "Yes, we have discussed that," he said.

The minister said for the development of the first phase of the project 2,718 acres of land will be required, of which over 1,700 acres have already been handed over to the company.

According to the minister the remaining portion of the land would be allocated to the company soon. Posco's project has been stalled since 2006 due to land issues and environmental clearances.