Delay in Posco project activity irks Idco

Non-commencement of boundary wall construction by Posco India on the land allotted to the company for setting up of an eight million tonne steel mill near Paradeep in the first phase, has irked Odisha Industrial Infrastructure Development Corporation (Idco), the land acquisition agency of the state government.

Venting its discontent, Idco said, Posco is yet to start work on its boundary wall at the project site despite handing over of advance possession of 1,703.56 acres of land.

“As per the Stage-II approval of the forest land by the government of India, Posco India is supposed to take up work around the boundary wall which has not been started though advance possession of 1,703.56 acres of land has been handed over to Posco”, Idco’s chairman cum managing director (CMD) Vishal Dev wrote to J K Mishra, joint secretary (planning & coordination), Odisha.

A copy of the Idco CMD’s letter has also been marked to additional secretary, cabinet committee on investment (CCI). A project monitoring group (PMG) of the CCI is making efforts to fast track approvals and clearances for large projects, including Posco steel plant, whose investment exceeds Rs 1,000 crore.

Posco India meanwhile, is facing a hostile environment at the ground level with affected villagers opposed to any project activity till their demands are fulfilled.

“The situation at the ground level is not conducive for Posco India. The villagers are still sulking since their demands are not fulfilled. Also, Posco India officials have not shown any initiative to reach out to the affected villagers,” said Tamil Pradhan, spokesperson of United Action Committee (UAC), a pro-Posco outfit.

The key demands of the agitating villagers are job for one member of each of the affected families, increase in land sale price from Rs 17 lakh to Rs 25 lakh per acre, 30 per cent increase in compensation for betel crop as decided at the last RPDAC (Rehabilitation & Periphery Development Advisory Committee) meeting in 2010, re-measurement of betel vines and compensation to the growers as per 2008 socio-economic survey, construction of colony for displaced families and hike in the rate of subsistence allowance from Rs 2,250 to 4,500 for the betel vine labourers.

Posco India executives could not be reached for their comments.

Idco is also sore over non-deposit of Rs 54.22 crore as land cost for 2,193.52 acres. This has held up sanction of lease of additional 1,048.52 acres for the project.

In total, 2,752.03 acres of land has been sanctioned for the eight million tonne capacity steel plant proposed by Posco in the first phase. Out of this, 1,703.56 acres has been handed over to the firm.

The other sticky issue for Posco is non-deposit of Rs 18.79 crore towards differential NPV (net present value) of de-reserved forest land. Due to non-deposit of this amount with the forest department, the order of the National Green Tribunal (NGT) is not being carried out by the department for notification of de-reserved forest land.

The NPV is the amount the user agencies need to deposit for diversion of forest land. It includes the cost of the land along with tangible and intangible benefits of the forest area and is charged at Rs 5.8 lakh to Rs 9.2 lakh per hectare depending on the type and density of the diverted forest land.