Monday, June 25, 2012

Land transfer begins for Posco s India Steel project

Last Updated : 23 June 2012 at 11:45 IST

MUMBAI(Commodity Online): Odisha Infrastructure Development Corporation (IDCO) has started the land transferring process for Posco India?s steel project at Paradip, Odisha, said Odisha Steel and Mines Minister Raghunath Mohanty.

1,500 acres of land will be transferred to the company by Odisha Infrastructure Development Corporation (IDCO) to build a steel capacity of 8 million tonnes per annum.

PTI reported that South Korean steel major POSCO may kick off work on its initial 8 million tonne per annum project by October if the state government transfers 2,700 acres of land to it.

A POSCO official said that, ?after the transfer, we hope to start land preparation work for the project by October.?

Posco had initially placed its land requirement at 4,000 acres to build a capacity of 12 million tonnes, including port facilities and storage yard for coking coal. But it later agreed for 2,700 acres. Earlier, IDCO had transferred around 500 acres to the company.

In August 2004 , the 12 million tonne steel project with an investment of Rs.500 billion was proposed and the Memorandum of Understanding (MoU) was signed in June 2005. The project was to be implemented in three phases of 4 million tonnes capacity each.

Progress on the project has been extremely slow due to various reasons including protests relating to land acquisition, delays in environment clearance and mining lease and water availability. A five-year MoU signed in 2005 had expired in June 2010.

A tripartite MoU has been submitted to the Chief Minister. The meeting to sign the MoU between the State Government of Orissa, Posco India and the parent Korean company Posco is scheduled for 22 June 2012.

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