By Bizodisha Bureau, Bhubaneswar, November 3, 2015 : It is curtains down for the South Korean steel major, Posco’s search for a greenfield steel plant in India. The steel giant has virtually signaled end to it $12 billion [Rs 52,000 crore] steel project in Odisha by returning 1.7 acres of land allotted to it by the state government for construction of the company’s guest house.

Earlier, the steel major had withdrawn its corporate office at the Fortune Towers, here.

“Posco has sent a letter to the general administration (GA) department expressing its desire to return the land allotted to it for construction of a company guest house in the state capital.

Now, the land will go to the GA department,”chief secretary G.C. Pati confirmed.

The state government had allotted 1.7 acres of land in Bharatpur area in the state capital for construction of its guest house in 2008. However, the land remained unused.

The GA department had earlier issued show cause notice to Posco for not developing the land.

For over a decade, the company had been struggling to put up its mega steel project proposed to be set up at Paradip in Jagatsinghpur district. Later, the company realized that it has no chance to get long term raw material linkage as it has been asked to participate in the bidding process as per the amended MMDR Act.

Frustrated over the slow pace of progress in its plan for a Greenfield project, Posco tied up with Uttam Galva group to set up an estimated $3 billion steel plant in Maharashtra.

However, Odisha Industry Minister Debi Prasad Mishra said he was still hopeful that Posco would set up the proposed project in the state.

He said Chief Minister Naveen Patnaik has already taken up the matter with Union Finance Minister Arun Jaitley and urged him to hold a high-level meeting to resolve the deadlock.