Posco looks forth to succeed second time; ties up with RINL

NEW DELHI: The setting up of up a joint working group (JWG) between the public sector Rashtriya Ispat Nigam (RINL) and Korean steel major Posco will go a long way in attracting foreign direct investment (FDI) and boosting Prime Minister Narendra Modi's ambitious Make in India project. The objective is a 2-5 million tonne per annum (MTPA) steel plant at Vizag.

The greenfield project, with an estimated investment of Rs 35,000 crore, has the government's approval. In fact, the Steel Ministry played a key role in organising a video conference on July 23 between the executives of the two companies.

"During the meeting, it was agreed to set up a JWG consisting of representatives from Posco and RINL to facilitate the implementation of the MoU signed between the two companies regarding investment on land owned by RINL. The JWG would meet regularly to expedite the implementation of the MoU," a Steel Ministry note said.

The Prime Minister's Office (PMO) reportedly "prodded" the Ministry. Which means that Central government organs - like those controlled by the Bharatiya Janata Party's state governments - will not play spoilsport.

Nobody, however, should get so sanguine as to assume that the JWG would bear fruit and the joint venture would soon take off, thus boosting growth and development. For decades of socialism and a decade under the Congress-led United Progressive Alliance regime have laid down enough landmines in the economy to trip any project.

The danger will persist so as long as the landmines are there. The compliances and clearances have been made extremely cumbersome and burdensome. Then there is the forest rights legislation; it can be an irritant for any industrial project. And, of course, there is the rich-versus-poor folklore: all industrial projects fatten capitalists, emaciate workers, damage the environment, and promote corruption.

The rainbow coalition of professional radicals, green activists, bleeding hearts and downright Luddites has been adding new fairy tales to the folklore, making it colourful but dangerous for the economy and the nation. (IANS)

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