Ahmedabad: After Tata Motor shifted its factory to Sanand in Gujarat in 2008, following the violent protest in Singur in West Bengal, another big ticket investment project, this time by South Korean steel giants Posco, has called Gujarat, looking for new rent, looking for new rentals Life for steel projects in India.
For this, steelmakers have joined hands with the Gautam Adani-LED Billionaire Adani Group and on Thursday they announced the signing of an agreement to build an integrated steel plant in Mungra and to explore cooperation in other businesses.
This pact imagines an estimated investment of $ 5 billion.
POSCO plans for steel projects in India have been blocked for years now due to protests by farmers and issues of land acquisition in countries such as Odisha and Karnataka.
At present, South Korea’s major runs Posco-Maharashtra, a cold and galvanized canai factory 1.8 million tons is considered the most sophisticated supplier of automotive steel in India, and four processing centers, in Pune, Delhi, Chennai and Ahmedabad.
“We are pleased to announce partnerships with Posco, the most efficient and sophisticated steel producers in the world, in steel production and carbon reduction,” said Gautam Adani, Adani Group.
The business cooperation between the two is anticipated to create the synergy of the dominant partnership in the Indian steel industry.
The project will also mark the robbery of the Adani Group into the manufacturing steel business.
“Posco and Adani Group aimed to establish a 5 million tons of steel factory in Kutch in the initial phase.
The factory will require a large number of hydrogen and given the great plan of adani groups to produce the cheapest hydrogen in the near future, it makes good business sense.
The proposed project will be Eco-friendly and environmentally friendly, “said an industrial official who was aware of this problem.
Adani Group also runs the largest private commercial port in Mundra and given its proximity to the upcoming steel factory, the supply of raw materials or even export will not be a challenge, he continued.
Memorandum non-binding understanding (MoU) between Adani and Posco imagined further collaboration at the business level of groups in the industry such as renewable energy, hydrogen, and logistics, in response to carbon reduction requirements.
The Chair of the Adani Group also added that the partnership will contribute to the growth of the Indian manufacturing industry and the Aatmanirbhar scheme Bharat fight for the Indian government.
“It will also help strengthen standing in India in the green business,” said Adani.
Both parties also examine the option to work together and utilize the technical, financial, and operational forces of each company.
Posco and Adani intend to utilize renewable energy resources and green hydrogen, in line with the commitment of ESG partners for sustainability and energy efficiency.
“Posco and Adani can come to major synergy in the steel business and environmentally friendly with posco advanced technology in steel making and expertise in energy and infrastructure.
I hope this cooperation will be a good and sustainable business cooperation model between India and South Korea , “said Jeong-woo, Choi, CEO, Posco.
Meanwhile, Posco and Adani also signed the MoU with the Gujarat government for support and cooperation for the collaboration.