Posco backs out of US$12b India project

Delhi

POSCO is backing away from a planned US$12 billion steel complex in India, which has been stalled by local disputes and lease issues since it was proposed a decade ago, people familiar with the development have said.

South Korea's biggest steelmaker has tried to get back the money that it gave to government agencies in the eastern state of Odisha to secure some of the land, and for railway connections, according to three people and company letters seen by Bloomberg. Six of 13 employees at Posco's Indian unit overseeing the project have also "voluntarily" resigned, spokesman IG Lee said in a text message.