Both the companies signed a Memorandum of Understanding to this effect on Thursday. This is a non-binding agreement and once it materialises, it will pave the way for the Adani Group to enter the steel sector.
According to a joint statement issued after the agreement, “Agreed to explore opportunities for commercial cooperation, including setting up of a green, eco-friendly integrated steel factory at Mundra, Gujarat, and other ventures. It is likely to involve an investment of up to $5 billion.” ”
On the other hand, for Posco, this is an opportunity to fulfill the old dream of setting up a steel plant in India. Posco had to back down from its plan to set up a $12 billion steel plant in Odisha a few years ago following protests over land acquisition.
The MoU between Adani Group and POSCO was signed in the presence of Gujarat Chief Minister Bhupendra Patel. The MoU was signed between the State Industries Department and the Adani Group and POSCO.
This agreement has been done as part of Vibrant Gujarat Global Summit 2022. The conference was scheduled to be held in Gandhinagar on January 10-12 but has been postponed due to the resurgence of COVID-19 cases.
However, it has not been told in this statement how much both the companies will invest at their respective levels. Apart from this, the details of partnership have not been given.
The proposed plant at Mudanda is expected to be ready by the year 2026. Its production capacity will be 50 lakh tonnes per annum. The special thing is that green energy will also be used in this.
Adani Group Chairman Gautam Adani said, “This partnership will contribute to the growth of India’s manufacturing industry and will also strengthen the self-reliant India campaign. This will also strengthen India’s position in green business.”
Posco CEO Jeong-Woo Choi said in a joint statement issued with Adani, “With our state-of-the-art technology in steel manufacturing and the Adani Group’s expertise in energy and infrastructure, the two companies are working together in the steel and eco-friendly business. can work.”
POSCO is South Korea’s largest steel producer and also has presence in the chemical, energy and infrastructure sectors.
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