Shree Uttam Steel and Power and South Korean steel giant Posco have signed an agreement to set up a three million tonne per annum integrated steel manufacturing company in Maharashtra, with an investment of $3 billion (₹19,200 crore).

The new steel plant is to be set up in two phases on 2,000 acres with the Indian company in Sindhudurg district.

Speaking to BusinessLine , Ankit Miglani, Director, Uttam Galva, said the initial work, including technical evaluation, has started and work on the ground will commence from September next year. Initially, he added, the Miglani family will hold 80 per cent in the joint venture company. The Korean company will have the option to raise its stake progressively.

Iron ore from Goa Allaying fears on sourcing iron ore, he said the upcoming plant would be the first in India to be designed for the use of iron ore from Goa, which has less iron content, but is available in plenty.

“Since the plant will be located close to the port, we can easily import coal from abroad and move the iron ore by sea,” said Miglani.

Shree Uttam Steel and Power is a privately held company of the Miglani family, the co-promoter of Uttam Galva Steels. ArcelorMittal Netherlands BV holds a 29 per cent stake in the company.

Posco currently has a 1.8-million-tonne steel mill near Pune to produce value-added galvanised and galva annealed steel, which is used by varied industries.

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