India's largest FDI deal signed

South Korean steel giant Posco said on Wednesday (22nd June) that it had signed the memorandum of understanding with the Orissa government for a $12 billion Indian steel project.

This investment by Posco, the world's fifth-largest steel maker, is the biggest foreign direct investment in India.

Sidestepping objections from several opposition parties, the Orissa government went ahead to sign the deal in Bhubaneswar for the establishment of a Rs 52,000 crore (Rs 520 billion) steel project at Paradip.

A 32-member Korean delegation comprising the Posco chairman Ku Taek Lee and Korean ambassador Jung Il Choi arrived in Bhubaneswar for the signing of the MoU.

The project, which would start with three million tonne capacity initially, would fetch revenue for the government to the tune of Rs 700 crore (Rs 7 billion) to Rs 800 crore (Rs 8 billion) annually.

It would provide direct employment to 13,000 people and ensure indirect employment for 35,000 others, the minister said.