Pitfalls of greenfield strategy- Case study of POSCO

India is the second most important FDI destination after china as per UNCTAD 2010–12 reports. Service sectors like telecommunication, construction activities, and software and hardware companies are attracting higher inflows from countries like Singapore, Mauritius, the US, the UK. India must do image-building exercises to promote it as a favourable investment location not only in service sector but also in manufacturing sector. India's effort to maintain its rapid economic growth rate will depend largely on its Greenfield projects. A Greenfield project means a project which has to be started from scratch level i.e. setting up of new manufacturing facility where nobody has ventured out yet. This paper deals with the Greenfield project done by, Pohang Steel Company (POSCO), the world's fourth-largest Korean steel company in Odisha which include iron ore mine development over 30 years (total 600 million tons) at captive mines located in the Keonjhar and Sundergarh districts of Orissa, as well as development of related infrastructure and the limitations faced by the company in its project implementation. Rehabilitation of displaced people and environmental issues are key problems which need to be addressed by the company. From the study we reach at the result that major problems faced by the company can be overcome by systematic problem solving techniques.