Welcome to POSCO-India

	Why did POSCO select India for overseas investments?
	The Indian market has a huge growth potential in terms of steel consumption. As of 2004, steel production in India stood at 35 million tons but its goal for the year 2020 is 100 million tons. To keep up to this target, the Government of India is actively encouraging steel consumption so that the steel industry acts as the locomotive for the overall economic growth of the country. In addition, the country’s rich mineral resources and availability of skilled labor makes it an attractive destination for investment. On the other hand, India will be able to derive huge benefits in terms of employment generation, revenues and FDI inflow. In addition, this project will proffer mutual cooperation and amity between India and Korea.

	What is the proposed investment of POSCO-India and in which areas will it be utilised in India?
	The 12MTPA integrated steelworks will be made in three phases of 4MTPA capacity per phase with FINEX technology. Other facilities like Steel Melt Shop with Converters, Casters, Rolling Mills, Lime Calcining Plant, Oxygen Plant, Captive Power Plant, etc. (collectively, the “Steel Project”) in Jagatsinghpur District of Orissa will also be constructed. Iron ore mine development for smooth operation of the 12 MPTA steel plant will also be taken up. In addition, infrastructure such as captive port, railway, and roads for efficient and secure operation of POSCO-India’s steel works will be built.

	How will POSCO’s investments in India benefit the allied industries and overall economy?
	The POSCO-India project will create enormous opportunities for developing ancillary and down-stream industries close to the steel plant. Some of the industries that are likely to come up include construction material manufacturing, by-product treatment, supplement material providing, maintenance shops and downstream industries like steel fabrication, plate & coil processing. There is a vast scope of indirect employment opportunity once the ancillary industries are set up in the area. A mega integrated steel plant such as the one POSCO will build in Orissa will lead to significant growth and investment in the country. Owing to the unique nature of the steel industry, which requires large equipment facilities, the project is envisaged keeping in mind the operations of 30 to 50 years. The project will extensively contribute to the development of India’s economy and society at large.

	As a part of its corporate social responsibility initiatives, what are the programs POSCO plans for India?
	POSCO-India will fully support and work with the Orissa government to spearhead social responsibility programs in the state. Some of the identified areas to begin work on are education and healthcare sector. POSCO-India has initiated programmes like POSCO-TJ Park Foundation Scholarship to promote education for the students in India especially Orissa. For the betterment of local people it successfully conducted a Cleft lip and palate correction camp where patients from Jagatsignhpur were given expert medical attention by a specialized team from Korea and senior professors from SCB Medical College, Cuttack. The company has already launched a ‘Villagers’ Friendly Programme’ for the benefit of local people. A detailed corporate social responsibility plan is currently being worked upon which will include in depth inputs from the Government of Orissa and other relevant bodies. POSCO-India will always strive to raise the standards of living of the people of the state through its various social responsibility endeavors.

	What are the infrastructure development activities being planned around the POSCO-India project?
	The Railway Ministry has given the rail transportation clearance (RTC) for POSCO's steel project. Railway links such as Tomka-Banspani line (155 km) and Haridaspur-Paradip line (82 km) are being established to facilitate the project. In addition, the central government is also constructing a single line between Banspani and Tomka and an additional parallel line between Cuttack-Paradip has already been completed. POSCO-India will also construct railway sidings, adding up to about 40 km, in the mining areas and the plant level on its own. Construction of the surge protection embankment connecting Paradip Port and the proposed plant site is expected to begin soon which will be followed by construction of access roads. The other road links which are being planned include Chandikhol – Paradip National Highway which will be made double lane and the Cuttack – Paradip state highway which will be widened. POSCO-India will build a Captive Port at the mouth of the Jatadhari River, 10 km from Paradip and a Captive Power Plant (CPP) with a capacity of 1300 MW. The Government of Orissa will supply power to meet the requirements during the construction period. The company will also lay pipelines for industrial water utilization from Jobra barrage. POSCO-India is working with the Government of India and the State government of Orissa to build the infrastructure required for the success of the project.

	How many villages / families / people are going to be displaced?
	According to present estimates about 400 families (2,000 people) in seven villages will be displaced for the Steel Plant Area. The company has minimized displacement by changing steel plant layout about 60 times. Certain densely populated regions in Dhinkia, Gobindapur and Nuagaon have been excluded.

	Is there any scope to shift the project to an area where there is less habitation and agricultural activities?
	Since we already fitted the plant layout to less inhabited area and have reworked on the layout about 60 times, it is very difficult to shift the project area. Moreover, there would be no such land where displacement will not be an issue.

	How was POSCO's R&R in Korea?
	POSCO has successfully rehabilitated all the displaced and affected people at Pohang and Gwangyang site in Korea. In both cases government of Korea proactively dealt with the entire process of displacement and rehabilitations and timely completion of the project could be achieved. Adequate and fair compensation with various benefits were given to the displaced and affected such as job opportunities, scholarships, Interest Free Loans, etc. The displaced families and their children have been working in the company and its subsidiaries.

	Do you have any plans for providing alternative livelihood opportunities to the farmers, landless agricultural labourers and fishermen?
	POSCO-India’s philosophy on R&R is to provide the displaced and affected people better living condition than before. The Company according to Orissa state new R&R policy will give adequate and fair compensation. Secondly, POSCO-India will finalise its corporate R&R package after the socio-economic survey in the site. For proper compensation, transparent and sincere discussion will be made through RPDAC where village people can participate. Besides compensation, the company is also considering vocational training for their stable living and their children’s future

	Where does the Company plan to have the Rehabilitation Colony & what kind of houses and other facilities like water, recreation etc. Are you going to provide?
	POSCO-India to the best of its abilities will try and provide a better way of life to the displaced and affected people. All issues related to rehabilitation colony and other amenities will be discussed in the RPDAC (Rehabilitation and Periphery Development Advisory Committee) with representation from the to-be-displaced families. Facilities to be provided in the Resettlement habitat also will be discussed and decided in the committee.

	How will POSCO-India compensate betel vine cultivators & Local fishermen who will lose their livelihood due to the project?
	POSCO-India will follow the R&R policy guidelines of Government of Orissa. Specific compensation will be decided by Compensation Advisory Committee (CAC) under the chairmanship of the Collector Jagatsinghpur. The committee will decide.

	What is POSCO-India&'s strategy to understand the local situation and win over the locals?
	POSCO-India wants to grow with locals. We would like to contribute to enhance their living. In order to know their concern and expectation, direct dialogue is necessary. The Kujang office has been opened to reach out to the locals. We have opened the door to the locals. We will listen to their voices and solve the issues together with village people.

	How does POSCO-India plan to employ the local people who mostly lack technical education?
	The company will always give priority to local population in this regard. Local people will have opportunity to seek employment through advertisements issued from time to time and the R& R policy. There will be vocational and self employment training for better employability of the displaced families. The company will pick up young talents from the state through employment exchanges, give them placement and upgrade their skills.

	Will POSCO-India give priority to local people in every sphere of employment?
	The answer is linked to the necessity of technology. The plant must get the people it needs to operate it. And in pursuit of getting the right people, the company will give priority to local population in every possible way.

	Other major steel companies in India use local ore, why does POSCO-India want to swap?
	It is a big disadvantage to swap and use foreign iron ore, with only the transportation costs amounting to more than $30/ton. However, the reason we are pursuing the swapping method is to maximize productivity and quality of our products. In order to produce steel with high productivity and high quality, the Alumina content of iron ore must be maintained at low levels (1.35%). Because India’s iron ore has comparatively high Alumina content (2.5~5%), it needs to be blended with foreign iron ore of low content Alumina (0.7%). Accordingly, we will swap iron ore as per requirements only. Therefore, we are actively working for a plan to maximize the use of India’s economical iron ore, by importing means such as the FINEX technology, etc.

	What is FINEX Technology?
	The groundbreaking, eco-friendly FINEX technology has been chosen over the Blast Furnace route for the POSCO-India project. FINEX, which POSCO has indigenously developed, is an environment-friendly iron-making process that allows the direct use of iron ore fines and non-coking coal as feedstock. In addition to significantly lowering operating costs and emissions compared to a Blast Furnace process. Moreover, a FINEX plant occupies only 60 per cent of the area of a Blast Furnace plant of equal capacity, thereby requiring less space.

	Why POSCO is not buying iron or at market price and sticking to mining lease?
	The objective of the state government of Orissa is to provide Mining Lease in order to attract industries and develop the area. POSCO-India will follow the policy of the Orissa State Govt and obtain the Mining Lease under the same conditions as that of other companies, and pay royalties. If the granting of Mining Lease to POSCO-India is a preferential benefit, it means granting ML to other steel or mining companies is also a preferential benefit. It is believed that if POSCO’s operations technology and its newest facilities are used in Orissa, it would allow effective value addition to Orissa natural resources, and would have a ripple effect on the other steel companies as well.

	How POSCO's mining system will be different from others?
	Considering the needs that 20 million tonnes per annum of iron ore will have to be supplied to the steel plant stably and consistently in terms of quality, each mine will have to be a well mechanized one and a bigger scale one than the existing Indian mines. As well, sophisticated beneficiation plant will also be needed to ensure the consistent quality of ore. POSCO-India will utilize Indian exploration agency for most of its key positions in developing and operating the captive mines. We will also be able to consider introducing advanced mining technologies by utilizing the well qualified and experienced mining consultants from other countries like Australia and Brazil.

	Is the proposed port at Jatadhari going to affect the movement of Olive Ridley Turtles?
	Bhitarkanika is unique habitat and a sanctuary for highly endangered species world over, Olive Ridley sea turtle. It is situated about 20 Km north of Paradeep Port. Based on the scientific data, the proposed port area is not directly related with nesting and mortality of Olive Ridley. POSCO-India will always focus on elimination of environmental risks from activities of port.

	Since Paradip Port is ready to create necessary infrastructure for the POSCO Project, why are you planning to have a Captive Port?
	One cannot think about a large-scale steelworks and a captive port separately. A captive port is essential for a large scale steelworks, and must be available for use at all times, taking into account logistical convenience and economical efficiency, among other factors. In the beginning three areas of Dhamra, Duburi, Paradip were compared, and Paradip, with its favourable soil quality, was selected for the port. A dedicated port is more economical and efficient than expanding and using the existing Paradip Port, which is 10km away from the plant. Construction of a captive port is beneficial even when non-monetary factors such as logistical convenience, inventory control, efficiency of steelworks operations/maintenance, convenience for infrastructure facilities, expandability, etc. are taken into consideration. Similar Examples of Foreign Steelworks: Korea’s Gwangyang & Pohang Works, Japan’s JFE Kurashiki Works, Burns Harbor Works of the US, Canada’s Stelco Hamilton Steelworks, Fos-sur-Mer Steelworks of France, etc.