“As per the plan, SAIL will give the land, while Posco will put in the capital investment,” he said.

“The 500,000 tonnes plant will make high-grade cold-rolled steel products. The investment is high because of the use of the Finex technology, which will mean considerable cost-savings in operations,” the official said.

Finex, Posco’s closely guarded secret, allows iron making using non-coking coal and iron-ore fines directly (without converting them into sinters or pellets).

The technology can also help save cost on setting up pellet plants and check wastage of iron ore fines.

Yet, a couple of SAIL officials said the investment envisaged for the planned Bokaro plant may be unviable in Indian context and may have to be tempered. “The estimate reflects the return on investment in the Korean market, where prices of specialised products are much higher. In India, such an investment does not mean a great business sense,” one of the official said.