80 kms away from the site,” Miglani reasoned. The project is based on POSCO’s patented Finex technology which works with iron ore fines, and Satarda, where the project is located, has abundant low-grade iron ore mines.
In the first stage the proposed steel plant will have 1.5 MTPA capacities and after 2-3 years, its capacity would be enhanced to 3 MT annually. The proposed project at Satarda in Maharashtra’s Sindhudurg district is expected to fructify soon as the Uttam Galva group has 2,000 acres of land in possession. The key factor in choosing Sindhudurg as the project site was because of its proximity to Goa, which has huge iron ore reserves. “While we can easily source iron ore from the neighbouring state, the Goa port is barely
Uttam Steel and Power Limited (USPL) is jointly promoted by the Uttam Galva group of the Miglani family of Kolkata and the world’s biggest steel maker ArcelorMittal. Here it may be recalled that both POSCO and ArcelorMittal have scrapped a number of other projects in India over the past two years, citing difficulties in acquiring land and mines. POSCO, which already has steel processing centers in some other cities - Pune in Maharashtra, Chennai in Tamil Nadu and near New Delhi in India, has made little progress and could scrap the Odisha project after a new law made it costlier to source iron ore for the plant. Uttam Galva has two operating steel projects at Khopoli and Wardha in Maharashtra. Maharashtra is also not a new destination for Posco as the Korean firm has a steel processing unit of 2 MT per annum capacity in Vile-Bhagad Industrial Area near the Mumbai port.
Initially, Uttam Steel and Power Limited (USPL) would have 80 per cent equity in the proposed project and the remaining 20 per cent would be with POSCO, while the Korean firm would have an option to increase its equity as the project progresses.
After battling for its decade-old proposed 12 MTPA mega steel plant in Odisha, one of the eastern states in India, the South Korean steel firm Pohang Steel Company (POSCO), world's No.6 steelmaker, signed a memorandum (MOU) with Uttam Steel and Power Limited (USPL) to set up a 3 MTPA integrated steel plant in Maharashtra (India) at an envisaged investment of nearly ₹ 20,000 crore (Approximately 3.07 Billion USD). According to a rough calculation an investment of about $1 billion is needed to set up a 1 MTPA (million-tonne-per-year) steel plant.