The work on a detailed project report (DPR) has started, and construction activity will commence from September 2016.

"We have signed a memorandum of agreement with POSCO Steel for setting up a 3-MTPA plant in Maharashtra. Right now, work on the DPR has started and the construction on the plant is likely to start after monsoon next year," Uttam Galva Steels Director Ankit Miglani said.
     
The first phase will include setting up a capacity of 1.5 MTPA, he added. Reacting to the news, Uttam Galva shares saw a spurt in volume on BSE and the company stock was up 8.98 percent at Rs 41.25 in the afternoon trade.
     
In a BSE filing, Uttam Galva Steels said: "Memorandum of Agreement (MOA) has been signed with Posco, Korea, by one of the companies owned by Miglani family, namely Shree Uttam Steel and Power Ltd, to explore the possibility of joint venture arrangement with them."
     
According to the close sources, the proposed steel plant can come up in the Sawantwadi taluk of Sindhudurg district in Maharashtra, where Shree Uttam Steel and Power has clearances in place.
     
The company proposes to set up a 3-MTPA steel plant and 150 MW of captive power plant. It has consolidated over 1,850 acres in the district. Shree Uttam Steel and Power has so far invested about Rs 1,000 crore in the project, they added.

 

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