Posco row sad, Korea wants to start afresh in Odisha: Envoy

Ambassador of Republic of Korea Shin Bongkil on Monday said the Posco episode in Odisha was an "unfortunate experience", but his country is now keen to "move on" and make a fresh start in the state.

Shin said Odisha abounds in natural resources and Korea wants to be the "first country" to reveal the state's potential to the world.

"We had an unfortunate experience surrounding the proposed Posco steel plant in Odisha, which could not be set up due to various reasons," he told reporters.

Shin led a delegation that met Chief Minister Naveen Patnaik here and discussed investment possibilities in the state.

"Posco's mega investment faced many hurdles and finally could not be materialised. I understand both sides have learnt from the Posco experience and now need to make a fresh start and move on," the envoy said.

The South Korean steel major could not go ahead with the Rs 52,000-crore Odisha project, mainly due to lack of mineral linkage to feed its proposed 12-mtpa plant.

"That was not only the single largest overseas investment by a Korean company, but also the single largest foreign investment ever made in India," Shin said.

"Korea wants to be the first country to reveal Odisha's potential to the world. Recognising its potential in natural resources, Posco had made the USD 12-billion investment commitment in 2005," the ambassador said.

Patnaik, on his part, called upon the Korean industries to invest in various sectors in the state.

He said there is a significant opportunity for both Korea and Odisha to strengthen trade, investment and tourism exchanges.

Patnaik identified six domains as focus sectors -- electronics manufacturing, petroleum, chemicals and petrochemicals, textiles, tourism and downstream to metal and food processing.

The chief minister assured the delegation comprising officials of various companies, including Samsung India, Hyundai Motors, Kia Motors, Samsung Electronics and Korea Trade Insurance Corporation that Odisha would provide a conducive business environment, industry-ready infrastructure and skilled workforce.

Asked about Korea's plans in the state, Shin said, "Small and medium companies cannot start alone. So, bigger companies will create business atmosphere here."