Business IdeasPosco gets final nod from Environment Min
South Korean steel giant Posco has finally got the clearance from the Environment Ministry for acquiring forest land for its proposed Rs 54,000-crore steel project in Orissa, which has been already delayed more than a year.
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"The Centre gave the final clearance for handing over 2,900 acres of forest land to us for our 12 million tonne steel project in Orissa. We are hopeful that the state government would soon transfer the entire 4,004 acre of land needed for the project to us," Posco India General Manager (External Relations) Simanta Mohanty told PTI.
Nearly 3,600 acres of land out of required 4,004 acres fall under the government category, while the rest remains under private control.
"We are ready to commence work on the much-awaited project any day now," Mohanty said, adding that the foundation stone could be laid any day.
Construction of project was originally scheduled to start in April 2008. The plant in the state"s Jagatsingpur district, involving one of the biggest FDI, was faced with the twin challenges of land acquisition and regulatory clearances. Apart delays in land acquistion, it is awaiting mining leases.
"We gave the stage II (final) forest clearance to Posco India yesterday, while the stage I clearnace was given in 2008," a top Forest & Environment Ministry official told PTI.
Last year, the Supreme Court green bench had given clearance to the company for use of forest land.
Keen on fast clearance of the project, the Steel Ministry had written to Orissa to help resolve the land issue.
The company does not have physical possession of the land as yet but is gearing up for the foundation stone-laying ceremony as on January 26, 2010. South Korean President Lee Myung–Bak is scheduled to lay the foundation stone for the project.
"We now hope the state government gives physical possession of the land to us immediately after the Ministry for Forest and Environment has accorded clearance for stage II," Mohanty said.