New Delhi: South Korean steel giant Posco is reviewing its investment plans in India because of the delays in getting approvals for its Rs 52,000 crore steel project.
Posco, which had signed an MoU with Orissa government in June 2005, is now looking at other options in Southeast Asia.
The company has told the Centre and the Orissa government that "if matters were not sorted out within the next two-three months, then it could re-consider its investment plans in the country", PTI quoted official sources.
Posco officials have asked the Navin Patnaik government to spell out its stand on its project "as it cannot afford to wait for an indefinite period," the sources said.
When contacted, Posco India officials declined comment. Meanwhile, Posco's Chief Executive Officer Ku Taek Lee met Commerce and Industry Minister Kamal Nath on Friday, apparently to discuss the progress of its project.
Posco is facing stiff resistance from locals at its project site in Jagatsinghpur district. The protesters allege the company wanted to acquire the land at a throwaway price.
The company was also actively toying with the idea of shifting to Vietnam, which has a huge potential market and an investment friendly climate, a Government official said.
"They have committed to the project, but are worried that nothing is happening on the ground," the official said.
"Many investors are watching the progress of Posco's project in India and are saying it is not a safe destination for investment," he added.
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