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Korean steel major POSCO expects to begin production in India by 2009 as part of its plans to increase its global capacity to 50 million tonne per annum within next 10 years.
"We plan to set up world class integrated steel mills with capacity of 10 million tonne per annum in Orissa. The project will have a capacity of three million tonne in first phase and operations will start by 2009," POSCO's President and CEO Kang Chang-Oh said at the Korea-India Economic Summit organised by CII.
From the initial capacity of 3 million tonne, the steel mills' capacity will be ramped up to 10 million tones in next five years. Apart from 10 million tonne capacity steel project, the company has also proposed to develop iron ore mines with a capacity of 30 million tonne per annum, he said.
The company is already procuring iron ore from India. In 2003 it bought two million tonne of the ore.
The entire project that POSCO proposes to set up in India will involve an investment of $8.4 billion over the next 15 years.
POSCO, which has chosen Orissa for investment, is awaiting the central and state government's nod to begin operations in India.