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Posco Likely To Start Work On Us$10b Indian Mill In July
Mar 26, 2012
South Korean steel major
Posco (KSE:005490) may begin work on its Rs 52,000 crore
(US$10.2 billion) steel mill in Odisha in July, as the state
government is likely to hand over 2,700 acres to it by June.
"The Odisha government would start land acquisition work
next month and is likely to hand over 2,700 acres of land to
Posco by June in the wake of discussions Prime Minister's
Office," sources said.
The development follows Prime Minister Manmohan Singh's
office reviewing with the Odisha government the progress of
long pending 12 million tonne (MT) steel plant in the state.
Singh is on a visit to South Korea where he is scheduled to
hold bilateral talks with South Korean President Lee Myung-
bak. The project is expected to figure in the discussions.
The steel plant, proposed at Jagatsinghpur district in
Odisha, is hanging fire for over six years due to land
Sources said Posco is in the possession of 500 acres. It
requires 4,004 acres for the 12-MTPA-capacity plant. The state
government so far has acquired about 2,000 acres.
When contacted, a Posco official said once the state
government transfers 2,700 acres to it, the company will go
ahead with 4-MTPA capacity initially and augment it as and when
the required land is available.
Officials of the Odisha government are understood to have
told the PMO that Posco should at least begin work on the land
already acquired for the project.
The PMO is learnt to have asked from the state officials as
to why the memorandum of understanding (MoU), expired more than
a year ago, has not been renewed.
The issue has been raised twice in past by South Korean
President Myung-bak with President Pratibha Patil and Prime
Posco is yet to initiate any work at the proposed site due
to opposition from the locals and activists against land
acquisition. Besides, the environmental clearance for the
project was also stuck for few years, before being given go-
ahead early last year, with certain conditions.