: Adani, Posco tie up for steel mill in Gujarat #finance #StockMarketNEWS #Business The pact is a part of the Vibrant Gujarat Global Summit-2022 New Delhi: Billionaire Gautam Adani’s group and

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Adani, Posco tie up for steel mill in Gujarat #finance #StockMarketNEWS #Business
The pact is a part of the Vibrant Gujarat Global Summit-2022

New Delhi: Billionaire Gautam Adani’s group and South Korea’s Posco have signed an initial pact to explore business opportunities to invest about billion on projects that include setting up an integrated steel mill in Gujarat, the two firms said on Thursday.

The non-binding pact, if it fructifies, will give infrastructure conglomerate Adani Group, which has in the recent months announced plans to foray into areas as vast as petrochemicals and hydrogen generation, an entry into steel manufacturing.

For Posco, it will fulfil its long-held ambition of having a large steel unit in India to cash in on growing demand in the country.

South Korea’s largest steelmaker had a few years ago dropped plans for a billion steel plant project with an annual capacity of 12 million tonnes in Odisha due to inordinate delays in land acquisition.

In a joint statement, Adani Group and Posco said they have “agreed to explore business cooperation opportunities, including the establishment of green, environment-friendly integrated steel mill at Mundra, Gujarat, as well as other businesses. The investment is estimated to be up to billion. �? The new investment is expected to generate 3,400 direct and indirect employment opportunities.

The memorandum of understanding (MoU) also provides for collaboration in various industries such as renewable energy, hydrogen and logistics in response to carbon reduction requirements, it said. The statement did not give details of individual investments or elaborate on the partnership.

The MoU between the industries department and the collaboration of Adani and POSCO was signed in the presence of Gujarat Chief Minister Bhupendra Patel at Gandhinagar on Thursday. It was signed by Additional Chief Secretary (Industries) Rajiv Kumar Gupta and Adani Group’s Karan Adani in the presence of senior government officials, according to a state government statement.

The pact has been signed as part of the Vibrant Gujarat Global Summit-2022, which was supposed to be held this month but postponed due to the rise in coronavirus cases. The plant, having the capacity to produce five million tonnes of steel annually, will be ready by 2026. Another highlight of the plant is that it will use green energy along with conventional energy for steel production, it said.

Posco has a 1. 8-million tonne cold-rolled and galvanised mill in Maharashtra that supplies automotive steel to the country’s leading automakers.

Adani Group, which started as a commodity trading firm in 1988 before foraying into seaports, power generation and distribution, renewable energy, coal and city gas retailing, has seen rapid diversification in recent years.