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POSCO India
POSCO India Private Limited (commonly POSCO India) is an Indian subsidiary of Korean conglomerate POSCO. Its parent company POSCO signed a memorandum of understanding in June 2005 with the state government of Odisha to construct a $12 billion steel plant. Various regulatory delays and controversies prevented the company from starting construction. The memorandum expired in June 2011, and it has not been renewed yet. Apart from Odisha, POSCO India has project sites in the Karnataka state.
Potential conflicts and risks that could jeopardize a programme Opportunities and relationships to build upon in implementing a programme to help make it a success The groups that should be encouraged to participate in different stages of the activity cycle
Plant Capacity
The 12 MTPA integrated steelworks will be completed in three phases of 4 MTPA each. In Phase1, hot rolled coil (2.5MT) and slab (1.5 MT) will be produced. The construction for Phase1 is scheduled to be completed by 2017-18.
Project objectives:
The objective of the project is to build one of the worlds most competitive steelworks with advanced technology and stable iron ore supply from captive mines, together with the economic development of Orissa
Target group
The project target group comprises the population in the catchment areas of project, as the steel plant will improve the road communication and markets benefit everybody irrespective of income and profession. It is expected that small and marginal farmers, small traders and microentrepreneurs, landless people and poor women will be particularly benefited due the overall development of catchment area. It is estimated that the total project beneficiaries over the project implementation period will reach about an estimated 48,000 direct and indirect jobs in the region. In addition, the construction phase will create about 467,000 man years of employment for the local population.
Project Partners
Several Stake holders can become partners in the project. For e.g. Suppliers and Vendors who were supplying raw material to the company can become one of the partners in the project, along with the existing customer base can be one of the leading partners in the project. In this case Govt. of Odisha is one of the partners in implementing the project within the stipulated
timeframe. Likewise, L&T and Hindustan Construction Company (HCC) can be the partners for developing the industry infrastructure of the project. Investors and the financial institutions can be the partner in the project.
Stakeholders
High
Inter
Political Party NGO Prospect customer Professional Associations
Low
Competitors
Low
Influence
High
SWOT Analysis
Weakness
Opportunity Threat
Lack of knowledge regarding technical specification which can lead to misinformation The exposure of information before
Community
formal announcement made Knowledge of local Lack of institutional Enhancement of Can influence situation Power Standard of local people Creating a very Lack of Technical living against friendly atmosphere Knowledge company to work Community Can create Can influence local Development roadblock in people executing the Help in implementing project CSR initiative The ability to provide administrative support The ability provide infrastructure The ability to influence people The ability create a friendly policy and decision The tendency to take populist decision The tendency to scramble to the pressure of NGOs and Opposition Resettlement and rehabilitation activities Enhancing the economical state of art Creating a nurturing environment for industry Subsequent changes in rules and regulations of government policies Unnecessary roadblock in providing license and allocated resources
Government
Suggestions
The project implementation got delayed due to delayed acquisition of the allocated land to the project; the situation could have been avoided by implementing a community development and awareness drive before going for actual acquisition of land. A more supportive atmosphere could have been created, if the company would have adopted a fair and transparent acquisition policy of their own rather than that of Government.
Lack in Community trust building efforts as well as educating the stakeholders about the positive prospects of the project. This initiative could have played a vital role in successful acquisition of land as well as getting the community support for setting up the project. They could have taken a holistic approach in partnering with the local NGOs in ensuring the proper allotment of funds meant for development of local community centers, i.e. schools, hospitals and temples etc. They should have emphasized on imparting vocational training and skills building to the local community to enhance their standard of living and in turn enhance their own credibility among the local community.