Published: Tuesday, Feb 1, 2011, 1:07 IST
By
Harish Gupta | Place: New Delhi | Agency: DNA
http://www.dnaindia.com/money/report_posco-gets-jairam-ramesh-nod-for-12-billion-orissa-plant_1501572
Pohang Steel Company (POSCO), the world’s third largest steelmaker, has received the environment and forests ministry’s approval for its $12 billion (Rs51,000 crore) integrated steel plant in India, paving the way for the country's single biggest foreign direct investment project six years after it was proposed.
The Union environment and forests ministry has, however, granted conditional clearance to the project, which involves setting up a steel plant, a captive power plant, and a captive port.
It has imposed 28 additional conditions while giving environmental clearance for the steel-cum-captive power plant over and above those stipulated in the original environmental clearance of July 19, 2007.
It has also imposed 32 additional conditions while according permission to Posco port spreading in the coastal zone of 3.48 km on the basis of a report by the Institute of Ocean Management, Chennai.
The ministry has sought Orissa Government’s “pointed” assurances before giving final approval for diversion of 1,253 hectares of forest land for the project.
Going by the ministry, the forest clearance has been given as there is no tribal residing in the Posco project area and no claims were received by the ministry from a single dweller.
The ministry had sought a categorical assurance from the Orissa government that those claiming to be dependent on or cultivating the land in the Posco project area do not belong to the other traditional forest dwellers category under the Forest Rights Act, 2006.
DNA was the first to report on December 28 that the joint venture project of Posco and Orissa government has been given clearance by the environment ministry’s expert appraisal committee.
Work on the project had come to a grinding halt in August last year after the ministry withheld permission to the project. Based on a ground report submitted by a three-member committee, the ministry had directed the Orissa government to stop land acquisition for Korean steel giant Posco because it violates the Forest Rights Act.
The formal go-ahead, though conditional, comes as a big relief to the industry, which has been deeply concerned over the dip in foreign direct investment on account of such delays. The South Korean leadership had also raised the issue when Prime Minister Manmohan Singh visited the country last year. In view of all this, the environment and forest minister Jairam Ramesh was signalled to fast-track his review of the project.
The state government and Posco signed an MoU on June 22, 2005 for setting up an integrated steel plant of a total capacity of 12 million tonnes per annum at Paradeep in Jagatsinghpur district. The plant would be located on the northwestern bank of the Jatadhari river creek, 12 km south of the Paradeep Port, requiring a total of 1620.496 hectares of land of which 1253.225 hectares is forest land and would affect eight villages in Erasama block of Kujang Tehsil.
While the Orissa government hailed the clearance and industry bodies also welcomed it, there were reports of protests. The farmers will hold rallies at the site starting tomorrow, Prasanth Paikare, a spokesman for opposition group Posco Prathirodh Sangram Samiti, said by phone from Bhubaneswar. “How can the minister overrule the panel’s recommendation?” Paikare said.
The clearance brings back focus on other steel projects facing delays.
ArcelorMittal, the world’s largest steelmaker, is also facing delays for two $10 billion mills, one each in Orissa and in neighboring Jharkhand state. Projects by Tata Steel Ltd, India’s biggest maker of the metal, in the two states and in Chhattisgarh, and by JSW Steel Ltd in Jharkhand have also been delayed on land issues.
(With Bloomberg)