Odisha govt will transfer 2,000 acres land to POSCO

The government of Odisha will soon transfer about 2,000 acres of land to South Korean steel giant Posco to start operations on its 12 billion dollar project near Paradip in Orissa.

500 acres out of the 2,000 acres, acquired by Industrial Infrastructure Development Corporation (IIDCO), have already been transferred to the company and the rest will be done soon.

The $12 billion project (Rs 52,000 crore) is inoperative for the about 7 years due to land acquisition and regulatory impediments. Posco had inked an agreement with Odisha govt on June 22, 2005 to set up the steel factory at Jagatsingpur. However, even if the company overcomes the land obstacles, it will have to wait for green clearances as the National Green Tribunal had suspended the clearance given to the company. The tribunal instructed the Ministry of Environment and Forests (MoEF) to review the approval pointing out that MoU signed b/w the Orissa govt and Posco declares that the project is for steel production of 12 million tonnes per annum (MTPA) but the environment impact assessment (EIA) report has been prepared only for 4 MTPA in the 1^st phase. Prime Minister Manmohan Singh had recently assured South Korean President Lee Myung-bak in Seoul that the project will be implemented and it is under development.

RELATED LINKS:

• Green Tribunal suspends environment clearance to POSCO
• India and S.Korea: Key areas of talk b/w the heads of the two nations

Month: Current Affairs - June, 2012