AP Govt in advanced talks with Korean Steel giant POSCO to set up plant

Andhra Pradesh government is in advanced talks with the South Korean Steel Giant POSCO to set up its greenfield integrated steel plant in Krishnapatnam

Y S Jagan Mohan Reddy led Andhra Pradesh government is in advanced talks with the South Korean Steel Giant POSCO to set up its greenfield integrated steel plant in Krishnapatnam. It has been promised fiscal and non-fiscal incentives over and above those stipulated in the state’s Industrial Policy 2020-23.

The information on these talks was shared after the increased attack by opposition parties on the YSR Congress and its leader, and their allegation that in collusion with the Centre the state govt is in efforts to privatise the Visakhapatnam Steel Plant.

CM has been accused of striking a deal with POSCO to hand over the VSP on a platter in conjunction with the Central government which many accuse it of being on a selling spree of national assets. However, Jagan has rebutted this and instead said that the South Korean company was invited by the state government and three different locations were offered to them.

High ranking officials of POSCO had already spoken to the Chief Minister on the issue. In continuation of the talks, POSCO India CMD Sung Lae Chun and his team had visited Krishnapatnam earlier last month to identify a prospective site for the steel plant.

To confirm POSCO’s proposal, R Karikal Valaven State Special Chief Secretary (Industries & Investment) had written a letter to Chun for setting up the plant at the identified location.

"The AP government envisages that the steel plant at Krishnapatnam will be an anchor industry in driving the economic activity in the region and the state will support POSCO to the best of its efforts," Valaven said.

He also added that, Krishnapatnam was one of the largest automated ports in South Asia, with a deep draft capable of handling Capesize and Panamax vessels. "Developing an integrated steel plant right beside a world-class port offers multiple logistical advantages, considering high volume imports and exports arising out of the operations,” he said.

The state government will be willing to consider further support in the form of fiscal and non-fiscal incentives based on specific requests in line with the volume of investment and employment opportunities and subsidiary industrial growth," the Special Chief Secretary assured.