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India's JSW Steel, POSCO to invest $7.7 billion in Odisha steel plant, sources state

India's JSW Steel and South Korea's POSCO plan to invest 650 billion rupees ($ 7.73 billion). in their proposed plant in India in the coming years, sources. said, part of efforts to capitalise on rising steel need in. the world's fastestgrowing significant economy.

Last week, JSW Steel and POSCO signed. a contract to establish an integrated steel plant with an initial. capability of 5 million metric lots a year. The plant will be in. the eastern state of Odisha, understood for its iron ore reserves.

They did not provide monetary information of the agreement, but. sources knowledgeable about the matter stated they will at first invest. 200 billion rupees in the plant, which one source said need to be. set up by next year.

Total investment will reach $7.73 billion after three years. of operations as the business raise production capacity to 18. million metric tons, the sources added. They did not want to be. called as they were not authorised to talk to the media.

Neither JSW Steel nor POSCO right away responded to. Reuters' e-mails seeking remarks.

Fast financial development and increased infrastructure costs. have actually turned India into an international hotspot for steel demand development,. even as need tapers in Europe and the U.S. India's steel. need touched a seven-year high in the April to August period.

Some of the world's big corporations have actually turned to India to. diversify their supply chains, sustaining a boom in production. and building. As companies established brand-new factories and. storage facilities, India's steel demand has actually surged.

In a further fillip to steel demand, the Indian federal government,. in addition to private business, plans to spend $12 billion. building new airports and broadening existing ones as it looks for. make flight more accessible and affordable.

The sources stated the proposed JSW Steel and POSCO plant. would produce hot-rolled, cold-rolled, and galvanised steel.

A few years earlier, POSCO scrapped plans to construct a $12 billion. steel plant - billed as India's most significant foreign direct. financial investment at the time - due to troubles in obtaining land. for the project.

It operates a cold-rolled, galvanized steel mill in India's. western state of Maharashtra, supplying automotive grades to the. nation's leading car manufacturers.

(source: Reuters)