Korean-based company looks to set up another steel plant in partnership with RINL in Visakhapatnam

Korean-based company looks to set up another steel plant in partnership with RINL in Visakhapatnam
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Visakhapatnam likely to have yet another steel plant in the district as Rashtriya Ispat Nigam Limited (RINL) and Korean-based POSCO have come forward to set up a steel plant.

Visakhapatnam likely to have yet another steel plant in the district as Rashtriya Ispat Nigam Limited (RINL) and Korean-based POSCO have come forward to set up a steel plant. The duo hashas written to the government to this extent and holding talks with Union Ministry of steel.

Company spokespersons said they will soon set up a steel plant in Visakhapatnam with Rs 20,000 crore with the land required for the construction of the steel plant is available at the existing steel industry. The POSCO company hopes that the plant will be able to import the necessary raw material, as it has a port in Visakhapatnam. It is for this reason they planned to set up a plant here. With the new steel plant being set up in the district, about 25 thousand people would get employment in the plant.

However, with the steel plant in Vishakhapatnam, it remains to be seen will the Central and State Governments approve another steel plant? Since the raw material sold at any area is taxed hence the state would not have GST revenue.

On the other hand, a steel plant is currently under construction in Kadapa, which is expected to be completed in three years. The country's steel industry capacity by 2018 is one crore four lakhs tonnes but currently, the country needs three crore tonnes. Hence the state government has taken up the construction of the Kadapa steel factory with Rs. 25000 crore.

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