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South Korean steel giant Posco said on Wednesday that it had signed the memorandum of understanding with the Orissa government for a $12 billion Indian steel project.
This investment by Posco, the world's fifth-largest steel maker, is the biggest foreign direct investment in India.
Sidestepping objections from several opposition parties, the Orissa government went ahead to sign the deal in Bhubaneswar for the establishment of a Rs 52,000 crore (Rs 520 billion) steel project at Paradip.
A 32-member Korean delegation comprising the Posco chairman Ku Taek Lee and Korean ambassador Jung Il Choi arrived in Bhubaneswar for the signing of the MoU.
The project, which would start with three million tonne capacity initially, would fetch revenue for the government to the tune of Rs 700 crore (Rs 7 billion) to Rs 800 crore (Rs 8 billion) annually.
It would provide direct employment to 13,000 people and ensure indirect employment for 35,000 others, the minister said.
Security blanket around secretariat
Security was tightened around the state secretariat in Bhubaneswar ahead of the signing of the MoU between the South Korean steel company Posco and the Orissa government for setting up of a 12 million tonne steel project at Paradip.
Fifteen platoons of Orissa Special Armed Police were deployed in and around the secretariat complex and barricades erected to keep protestors at bay.
The security measures had been beefed up in view of the announcement of four opposition political parties on Tuesday to oppose the deal billed as India's largest ever FDI venture.
200 anti-Posco demonstrators arrested
Over 200 protestors were taken into custody by the police outside the state secretariat as they raised slogans against the signing of the MoU.
The protestors belonged to four opposition outfits -- CPI, CPI(M), Janata Dal(S) and OGP -- who had announced their decision to agitate against the deal alleging that it would allow the Korean company to export iron ore from Orissa.