Posco can turn investment projects in India due to an ongoing war with the local population

Today it became known that the largest South Korean steel company Posco is considering the possibility of refusing investments of $ 5 billion in India due to political instability and active opposition to residents of the state of Karnatak. This was reported by sources of acquaintances with the situation.

As reported, Posco intends to build two metallurgical plants in India: the first in the state of Odisha - with a capacity of 12 million tons of steel a year, and the second in carnatak - with a capacity of 6 million tons of steel. And if the company has some prospect of starting construction after 8 years of struggle with officials and local residents, then in Karnatak it seems to be a problem in a deaf corner.

"Posco began negotiations within the company regarding the exit from the project for building a missile defense system in Karnatak, because the protests of local residents are not given the opportunity to purchase land for construction," the Reuters correspondent told Posco to a secret.

According to the agent, the fifth steel company in the world will decide to reduce investment in India this week and will probably abandon its plans for the construction of a metallurgical plant with a capacity of 6 million tons per year.

Meanwhile, the plant will be built in the individual and, according to Posco representatives, will begin to produce 12 million tons of steel annually since 2015. For the foundations of the enterprise, sandy gravel mix sufficiently.

Recall that the Indian government recently stated that it intends to much increase steel production in the country and the decision of the Korean company would become very unexpected for the Indian authorities.

In addition, due to similar problems, Arselormital turned almost all of his investment projects in India at the beginning of this year.