Referring to a question by Rajya Sabha member whether POSCO and Hyundai are planning to set up a greenfield steel plant at an estimated cost of ₹30,000 crore on the premises of the RINL in Visakhapatnam, Union Steel Minister Dharmendra Pradhan said that POSCO has evinced interest to set up a steel plant in Visakhapatnam on RINL’s land. He said that a non-binding MoU has been signed in October 2019, between the RINL and the POSCO.
Thereafter, a joint working group has been formed for exchange of information. However, shareholding pattern has not been determined at this stage. But as per the MoU, Posco has wished to have at least 50% shareholding while the shareholding of RINL would be worked out on the basis of valuation of the RINL’s in kind contribution of the land for setting up of the plant.
Mr. Pradhan in his reply further stated that a joint team of POSCO and Hyundai along with the Ambassador of South Korea to India had visited RINL and participated in a meeting with the representatives of RINL, NMDC and Ministry of Steel on October 22, 2018.
Subsequently, a team of officials from POSCO visited RINL on August 9, 2019, September 23, 2019 and on February 20, 2020, in connection with the setting up of the plant.