'Posco can start work at 2000 acres of land acquired so far'

The Orissa government today said Posco India can start work at the 2,000 acres of land acquired so far for setting up of its proposed 12 million tonne per annum steel plant near Paradip at a cost of Rs 52,000 crore.

"The state government has so far acquired over 2,000 acres of land for Posco's steel plant. The company could easily start its work at the acquired land," Chief Secretary B K Patnaik told reporters.

Stating that the South Korean steel major wanted about 4,000 acre of land, the Chief Secretary pointed out that 2,000 acres is not a small patch.

"They (Posco-India) had proposed to set up a 12 mtpa steel facility in three different modules. Now the acquired land can accommodate the steel plant," he said.

Patnaik added that the state government was not sitting idle and efforts were on to acquire land for construction of roads to the proposed plant site and rehabilitation colony, an associated requirement,

Rejecting the allegation that slow land acquisition has delayed implementation of the country's largest foreign direct investment (Rs 52,000 crore), Patnaik said the company got the final forest clearance from the Union government barely some months ago.

The state government has acquired over 2,000 acres since May, 2011, after the project got the final forest clearance from the Environment and Forest Ministry, an official said, adding that it is not appropriate to blame the state government for the delay.

The chief secretary has already issued directions to the district administration of Jagatsinghpur and the authorities of IDCO (Industrial Infrastructure Development Corporation) to immediately start land acquisition and other related activities for construction of roads to the proposed plant site area and rehabilitation colony, sources said.

Replying to a question on the need for a new MoU with Posco-India as the old one lapsed in June 2010, Patnaik said, "The law department is examining different angles before revising the document."