proj prog - POSCO-India

posco-india(posco-india), 172.30.15.210, 2007-11-05 11:14:24, POSCO CONFIDENTIAL 

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POSCO-India Project 

November, 2007



Contents 

1. POSCO Story 

2. POSCO-India Project Vision 

3. Benefits from Project 

4. Facts on Project



1. POSCO Story 

Brief History 

Jun. ’05 POSCO-India 

Steelwork MOU 

30 

Crude Steel Production 

(Unit: Mil. tons) 

’94 

Enlisted New York 

Stock Market 

’00 

Privatization 

’06 

31 M. Ton 

20 

’92 

Completing the construction of 

Gwangyang Steelworks (20.8 M.Ton) 

10 

’70 

Starting construction 

of Pohang Steelworks 

’85 

Starting construction of 

Gwangyang Steelworks 

’83 

Completing the construction of 

Pohang Steelworks (9.1 M.Ton) 

‘68 

Established 

1980 1990 2006



 

World’s No. 3 Steel Maker also … 

Crude Steel Production 

Revenue 

Net Profit 

Employees 

As of 2005 

23 Billion $ 

4.5 Billion $ 

17,575 

(as of May 2006) 

Most Admired Company (`05) 

World 100 Companies in 10 years (’05) 

Composite Competitiveness 

Major 

Player 

POSCO 

Tisco 

(India) 

Baosteel 

(China) 

NSC 

(Japan) 

Most Respected Company (`05) 

’05 

2 

1 

3 

14 

‘04 

1 

4 

3 

12 

Ranked No.1 Company in Steel (`03) 

Source: World Steel Dynamics



* Tested WILL power 

POSCO’s credentials – Converted a DREAM to REALITY 

Pohang (before) 

Pohang (after) 

Pohang (after) 

Gwangyang (before) 

Became No.1 steelworks 

in in a short span of of 30years 

(‘68, 0→‘ 98, 25.6mt) 

Gwangyang (after)



2. POSCO-India Project Vision 

To build world’s most competitive integrated steelworks 

with upstream operations and advanced technology 

Integrated Steelworks 

Capacity: 12 MTPA 

- 1st Phase 4 million tons 

Construction by 2016 

- 1st Phase: ~ 2010.12 

Captive Mine Development 

Production: 20 MTPA 

for 30 years 

Mining Leases for 600 MT 

Project Requirements 

Infrastructure Development 

Captive Port 

- Raw Material Berth 

- Product Berth 

Land Logistics: Railway, Road 

Utilities: Water, Electrical Power 

Land, Approvals & Clearances (CRZ/PFC/EIA, SEZ, etc), Grant of PL & ML for Captive Mines 

Backbone of Logistics (Railways, National & State Roads, etc)



National Steel Policy, 2005 

Ambition: 

Steel Production in India 

110 MT 

Indian Total 

64 

42.7 

POSCO-India 

6% 

11% 

2005~2006 2011 2019

We’ll bring FINEX : 21C Technology 

Process Comparison between Finex and Blast Furnace 

Blast Furnace 

FINEX 

Fine Ore 

Coking coal 

Non-coking Coal 

Fine Ore 

Sinter Plant 

Coke Oven 

F.B. Reactors 

Sinter 

Coke 

Coal Briquette 

HCI 

B.F. 

Hot 

Metal 

Melter Gasifier 

Hot 

Metal 

☞ 1 Module of Finex Plant with 1.50MT capacity is operational from May 2007 

in Pohang Works. 


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FINEX Ecological Competitiveness 

100 

SOx 

BF 

NOx 

Dust 

50 

0 

Sinter 

Plant 

Cokes 

Oven 

BF 

Route 

28 % 

3 % 

1 % 

FINEX BF Route FINEX BF Route FINEX 

SO x 

NO x 

Dust 

: Sulfur from coal & ore is taken into slag as CaS 

: A little generation due to the use of pure oxygen instead of air 

: Less generation due to absence of sinter and coke making process



3. Benefits from Project 

Annual Gross Output : Rs. 29,760 Cr. 

Annual value addition: Rs. 12,100 Cr. (11.5% of Orissa GDP in 2016~17) 

Tax Contribution: Rs.174,970 Cr. in next 35 yrs 

GoI: Rs.97,100 Cr., GoO: Rs.77,870 Cr. 

Annual tax to GoO is Rs. 2,620 Cr. (17.6% of total tax revenue of GoO in 2016~17) 

Employment: 870,000 man years (88% of state unemployment in ’05~’06) 

Direct employment: 18,000 man years 

 

Category 

Gross Output 

(Rs. Cr) 

SGDP (Rs. Cr) 

Tax (Rs. Cr) 

Employment 

(Job) 

Orissa State in 

2003~04 

111,378 

53,830 

8,170 (’05~06) 

143 lakh (’01) 

POSCO-India’s Impact 

29,760 

12,100 

2,620 

8.7 lakh 

Percentage 

26.7% 

23.0% 

32.1% 

6.1% 

* NCAER: National Council of Applied Economic Research, India (2006)



Sector-wise Annual Gross Output and Employment Generation 

4,607 

POSCO-India 

Contribution 

Orissa 

271 

Annual 

Gross Output 

(Rs in crore) 

28,263 

2,120 

3,937 

3,697 

12,267 

17,291 

6,624 

51,734 

1,774 

8,553 

Employment 

Opportunities 

(Man year) 

Agro based 

business 

99,000 

Mining 

(Coal, 

Minerals) 

63,000 

Manufacturing 

346,000 

Iron & Steel 

100,000 

Services 

(Transport, etc) 

103,000 

Trade 

159,000 

※ Iron & Steel: Including Captive Mines (employment generation 15,000 persons)

4. Facts on Project 

Plant 

 

 

 

 

Only 438 acres of Private Land out of 4004 acres of Land required 

Land mostly sandy, reclaimed from Sea and unfit for seasonal crops 

Only about 471 families will be displaced from their homestead land 

Committed to accept R&R Policy of GoO including Employment 

Port 

Completed Impact study on adjacent areas by CES, DHI and NIO 

* CES : Consultant Engineering Services 

DHI : Danish Hydraulic Institute / NIO : National Institue of Oceanography 

Constructing Surge Protection Embankment with PPT and IOCL 

Mines 

 

 

 

Committed to Value addition in Orissa, Environment protection 

Scientific mining development with state-of-art technology 

No Export of ore, only ore swapping if necessary with zero net export 





Recent Development 

Support base at site is encouraging 

Mr. Soung-Sik Cho, CMD, POSCO-India along 

with senior company officials visited the project 

site, mainly Nuagaon, Gada Kujanga and 

Noliasahi in Jagatsinghpur area on 31st August 

2007 and interacted with the villagers. He received 

overwhelming welcome and was taken to the site 

in a procession by the local people.

Joining hands in development 

Infrastructure 

Railway 

Signed shareholder agreement for 10% equity participation in 

SPV of construction of Harsdaspur Paradip Railway 

Access roads 

Planning for access road connecting steel plant to NH5 & SH12 

Water 

Planning to recycle 98% water 

Power Supply 

Will consume 24MW from OPTCL for construction of steelworks 

*OPTCL: Orissa Power Transmission Corporation Ltd. 

Eventually, will have own Power Generation for meeting Operation Load 





Making life of People better than Before 

About 600 families will be fully rehabilitated – 

• a Job/ Land/House + Compensation 

About 1500 landless labourers will be provided alternative 

opportunities for earning livelihood 

About 20,000 people will see qualitative improvement in living 

standard due to massive infrastructure development 

CSR programme already started 

• Medical Assistance including surgical help (Cleft lip, palate, burn defects) 

• Scholarship for meritorious poor from the area, for higher education 

• Distribution of educational materials for poor school children 

• Vocational training for young men and women 

- Empowering for self employment 

• Socio-economic survey for planning focused initiatives

Studying Sustainable Livelihood Support Program 

Objective 

• To create opportunities of gainful self-employment for the rural 

families, especially disadvantaged sections, ensuring sustainable 

livelihood, enriched environment, improved quality of life and good 

human values with BAIF (Bharatiya Agro Industries Foundation) 

Procedure 

• To find out the exact needs of plant site villagers 

• To chalk out the draft action plan to make a success story in villages 

• Had field survey and need analysis of villagers Meeting with BAIF Development 

Research Foundation from 25th to 28th July. 

• Make the final project plan of BAIF by 2nd week Aug. 

• Considering to send 10~15 smart young men from plant site to benchmark 

BAIF and replicate their skill to the local villages. 

Scope of this project 

1. Providing training & capacity building with new technology & supportive activity. 

2. Act as facilitator & mobilize for new Programs. 

3. Regular time to time field visit, monitoring & support. 





Its just not about making steel, but transforming life, 

as we did in Korea 

A transformation in living standards of the poor that is QUITE possible 

We need full support to make this dream a reality



Thank You !

proj prog - POSCO-India

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