It is emerging that Vishaka Steel Plant already entered into an MOU with South Korea’s POSCO for setting up a new production unit in the lands of the Steel Plant. The MOU terms indicate that Modi Government has done some serious injustice to the Steel Plant and the employees living on it.
The Steel Plant will give 1,167 acres of land to the new production unit in which POSCO will have 50% share. The share of Vishaka Steel Plant is not specified in the new venture and it was mentioned it will depend on the extent of the land given. Interestingly, the land value can not be determined by the Steel Plant and will be decided by a third party.
POSCO also has the right to bring another investor. Once their share crosses 50%, the new entity will obviously become a Private venture. The Steel Plant is obliged to give extra lands if needed for the new venture. It will also have to produce according to the needs of POSCO’s plant in Maharashtra.
It is not allowed to follow market demand and conditions. Not even a single term in the MOU is in favor of the Vishaka Steel Plant.