HIGHLIGHTS OF THE POSCO INDIA PROJECT

 

 

1.      Project Components and location :

 

    • Steel Plant (12 million tonne/year) : Paradeep at Jagatsinghpur, Orissa State

    • Captive Port : with big berth for cape size vessels at the same Steel Plant site

    • Mine : 2 – 3 mines in Keonjhar/Sundargarh area

    • Railway (about 300Km) :  Possibility of participation  in SVP for the railway lines being developed from the mining areas to the site of the steel plant.

    • Others : Captive Power Plant, Township, Industrial Water Pipelines, Rehabilitation Colony etc.

 

2.      Estimated Cost of The Project                     (in million US $)

 

 

 

Phase-1

Phase-2

 

Total

Module.1

Module.2

Module.3

Module.4

Steel Plant

1,734

2,418

1,734

2,418

8,004

Captive Power Plant (BF, Continuous casting, HR-Plate)

104

173

104

173

300

Port

390

122

209

84

805

Mine

500

-

500

-

1000

Railway

-

600

-

-

600

Other

183

90

-

40

313

Total

1,911

3,403

2,547

2,715

11,576

  

3.      Tax Revenues anticipated from the Project

 

The setting up of the steel plant by POSCO will bring in a stream of revenue both to the Central Govt. and to the State Govt. The Central Govt. is likely to benefit to the tune of approx. Rs. 89,000 crores over a period of 30 years by way of excise and customs duties, service taxes and corporate income tax.

   

         The Govt. of Orissa on the other hand, is likely to benefit to the tune of approx. Rs. 22,500 crores over a period of 30 years by way of sales tax/VAT, works contract tax, electricity duty, royalties, Orissa Infrastructure Tax and share of Central taxes.

 

4.  Employment Potential  

 

In terms of employment, the entire project including mining, steel plant and port is likely to generate direct employment to the tune of 13,000 persons and indirect employment for 35,000 persons.

 

It is also estimated that at the peak of construction activity, POSCO would need more than 18,000 skilled workers (such as carpenters, welders, brick layers, painters, electricians etc.) daily

 

5.      Further Development Potentiality for ancillary & associated industries

 

            I.      Ancillary Industry : Cement/ Pile/ Light & heavy Metal /Machinery / Refractory/ Petrochemical /Distribution Industry etc.

        II.      Industries associated with steel production : Automobile /Ship building/Construction.

 

6.      Financial Status of POSCO – Consolidated Figures

The Financial performance of POSCO for the last 3 years  was as follows :

 

 

 

< Unit : Billion US Dollars >

( Calendar Year )

 

2002

2003

2004

Sales

11.3

13.90

19.10

Gross Profit

2.50

3.80

5.90

Net Profit

1.06

1.90

3.70

(After Tax)

 

 

(Rs.15,900 Cr.)

Net Worth

11.20

12.50

15.60

 

 

 

(Rs.67,423 Cr.)

US $ = Rs. 43.22