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PM assures POSCO heads; says keen to move forward with POSCO

26 Mar 2012 Evaluate

Prime Minister Manmohan Singh has assured to speed up the retarded Rs 52,000 crore POSCO project today. The Prime Minister has asked the Korean steel giant’s CEOs to 'have faith' as India is keen to move forward with the delayed project.

Confessing the policy paralysis and bureaucratic delays, PM said, 'I recognise that sometimes our processes can be slow but there are effective mechanisms for resolution of problems and differences and a strong rule of law. The government is keen to move forward with the POSCO project and there is some progress in this regard.'

Hitting road bumps in land acquisition and regulatory clearances, the second largest FDI project in India had planned to set up an integrated steel mill at Jagatsinghpur district in Odisha which is delayed by around six years and have perturbed the Korean investors. The issue of land acquisition had aggravated to the extent that Odisha police issued a notification asking POSCO to refrain its officers from visiting the site, owing to life threat by the locals. However, PM’s assurance that 'India is a stable and profitable long term investment opportunity', he said: 'We will take pro-active steps to address investor grievances and improve the business climate in the country...I urge Korean industry to have faith in India,' has given a ray of hope for the project.

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