Cho: Initially, it took sometime for the project to take off but now it is progressing well. We have got official clearance for the steel plant and environmental clearances and also got port clearances last month. In some ways, I am not happy with the speed of progress. But with the official clearances trickling in, I am satisfied in some sense. It is difficult to keep to the targets that we had set earlier as we are already behind schedule by almost a year but I am happy that at least the project is on track. All projects in India are showing slow growth and facing the same kind of problems. Considering our scale of operations, we are doing quite well.

Q: The important issues of mining leases and land acquisition are still to be sorted out. Does that frustrate you?

Cho: The situation is much better now on both counts than what it was earlier. People in and around Jagatsinghpur are more aware of the project and the benefits that will accrue from it. There are villages which have started coming out in favour of the project openly and that makes a better climate for the project. On the issue of mining leases, preparations are on for the hearing of all the applications and it will take a couple of months. We don’t expect any hurdle in that and expect no further delay in the overall project.

Q: Posco does not have captive mines for its plants in Korea. Why is it so important in India?

Cho: Everybody from Tata to SAIL gets captive mines. So why should we be left out? It is true that we don’t have captive mines elsewhere but we do have mining experience in Australia and are capable of mining in India. Captive mines are not essential in the overall scheme of things but considering that iron ore prices have shot through the roof, it does help in managing costs. Though other costs like taxes, logistics and transportation are high in India, we will produce steel that is cheaper than what we produce in Korea.

Q: Who is responsible for all the delays? The state government had promised mines to you in the MoU. Are they to be blamed for the fact that you still have not got them?

Cho: I don’t think the blame lies with any one particular ministry. The state government is doing its best and so is the Central government. Their positive intent is clear as is exemplified by the fact that the PMO is directly looking into the matter. It is the system here that is to be blamed. It is very politicised here and does not allow projects to move at a faster pace.

Q: The global steel industry has been on a high for quite some time now. How do you see it going forward? Is there a recession in the offing?

Cho: Steel is a cyclical industry and the positive trend will continue in the near future. However, I think the peak is clearly over. The global steel industry will stay balanced in the next two to three years but after that, we can experience some kind of recession.

India, too, will have to be ready for it as I believe that Indian manufacturing is not that well developed. Posco will concentrate on high quality steel and service sectors like automobiles and home appliances, which produce high quality products.

In a way, with our products, we will help manufacturing here go a few notches higher.