Tycoon Adani, Posco in Pact for $5 Billion India Green Projects
(Bloomberg) -- Billionaire Gautam Adani’s group and South Korea’s Posco have signed a pact to explore business opportunities in India, including the setting up of a green steel mill in Gujarat, with a potential investment of as much as $5 billion in the coming years.
The non-binding agreement between Adani Group and the South Korean steel giant will also seek to collaborate in various industries such as renewable energy, hydrogen and logistics in response to carbon-reduction requirements, Adani Enterprises Ltd. said in an exchange filing on Thursday.
The Adani conglomerate is rapidly ramping up its solar energy portfolio and its ports business with an aim to become carbon neutral by 2025. In the past two decades, the group has rapidly diversified into ports, power generation and distribution, airports, data centers and digital services. Adani, who is Asia’s second-richest person, has also been focusing recently on expanding his conglomerate into metals. Last month, the group set up a new subsidiary for aluminum.
For Posco, which abandoned a plan to set up a steel plant in eastern India about six years back after delays in land acquisition and farmer protests, the plant could offer a chance to tap the country’s growing demand for high-grade steel.
Posco currently operates a cold-rolled and galvanized steel mill in the western state of Maharashtra apart from processing plants in four centers across the country.
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