South Korean company Posco is interested to invest nearly $12 billion in India and it is going to be the biggest investment from any foreign company in India. Posco has sought clearance from the Indian government to recognize its proposed project in Jagatsinghpur district of Orissa as special economic zone. Indian government has agreed to give this status to Posco. IHT reported:
“India on Thursday approved South Korean steel-maker Posco's proposal to develop the site of its planned Indian plant as a "special economic zone," a status that will give Posco significant tax breaks.
Posco plans to build the steel plant — which would be the country's largest — near the port of Paradeep in the eastern state of Orissa.
By developing the 1,600-hectare (3,960-acre) site as a special economic zone, Posco will be eligible for tax breaks on its export earnings from the project.”
This tax break will be surely welcomed by Posco officials. There have been some uncertainties over the fate of project. So, now all the sides will be happy that the problem has been solved. Of course, the state government of Orissa will be the happiest party as this investment will create many jobs in the state.
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