📷 Image: Wikimedia Commons / Prime Minister's Office, Government of India
Business
Posco's $12bn Odisha steel project, once hailed as India's biggest FDI, collapses
✍️ business-standard.com
🗓 06 Sep 2026, 11:36 PM
👁 3
The steel plant planned by South Korea's Posco in Odisha, billed as the country's largest foreign direct investment, has been abandoned after the deal fell apart.
South Korean steelmaker Posco had secured a multi‑billion‑dollar foreign direct investment to set up a massive steel plant in Odisha, a project that was promoted as the largest FDI ever in India. The venture promised to bring advanced technology, extensive downstream facilities and a significant boost to the state's industrial base.
However, the agreement could not be finalised, and the partnership collapsed before construction began. Sources close to the negotiations said that unresolved issues over regulatory clearances and project terms led both parties to walk away, resulting in the withdrawal of the pledged capital.
The cancellation is expected to dent expectations of job creation and economic growth in the region. Industry analysts note that the setback underscores the challenges large foreign investors face in navigating India's approval processes, even for projects that carry high strategic importance.
The government has not announced any immediate replacement for the lost investment, leaving the future of large‑scale steel manufacturing in Odisha uncertain.
However, the agreement could not be finalised, and the partnership collapsed before construction began. Sources close to the negotiations said that unresolved issues over regulatory clearances and project terms led both parties to walk away, resulting in the withdrawal of the pledged capital.
The cancellation is expected to dent expectations of job creation and economic growth in the region. Industry analysts note that the setback underscores the challenges large foreign investors face in navigating India's approval processes, even for projects that carry high strategic importance.
The government has not announced any immediate replacement for the lost investment, leaving the future of large‑scale steel manufacturing in Odisha uncertain.