Posco's long-delayed steel plant in India takes step forward

|By:, SA News Editor

South Korean steel maker Posco (PKX) is granted environmental clearance to build a $12B steel plant in eastern India, a project mired in delays for eight years thanks to bureaucracy.

The go-ahead includes required spending on "social commitments," which would raise the project's cost by an additional $600M; analysts say the project still has other environmental and land procurement hurdles to overcome.

PKX also hopes to receive good news soon on its request for a license to explore iron ore in India.

The approval comes as South Korean's president is scheduled to visit India next week.