Non-clearnce of NPV dues to hit Posco land transfer

The non-clearance of dues towards net present value (NPV) of trees to be cut for the Posco’s mega steel plant in Odisha is likely to delay the transfer of land acquired for the project to the company.

According to a letter of the office of the Controller and Auditor General (CAG) to the state government, dues of about Rs  19 crore are pending against the company. CAG has asked the government to take immediate steps to recover the amount.

Sources said, the pending dues will create hurdles in transfer of project land to the company. “Unless the company clear the dues, the land transfer cannot take effect”, pointed out an official.

The Jagatsinghpur district administration last month had announced completion of the process of acquisition of 2700 acres of land, required for the first phase work of the project comprising 8 million tonne steel capacity).

Of this, 1700 acres have been handed over to the company on paper and the remaining 1000 acres are yet to the transferred.

A Posco India source said, the company had deposited Rs 105 crore towards NPV with the state government in November, 2008 as per the demand raised then prior to the grant of forest diversion permission. “We have not received any fresh demand. We will look into the matter”, he added.

Out of total 4004 acres required for the Posco’s original plan of 12 million tonne capacity, nearly 3000 acres were categorised as forest land.

The final approval for forest diversion plan of the project was received from the Union ministry of environment and forest (MoEF) in May, 2011.

The project requires felling of about three lakh trees, mostly comprising casurina plantations and fruit bearing trees. The land acquisition agency for project, the Industrial Infrastructure Development Corporation (Idco) and the district administration had initiated the process of cutting down the trees to clear the site of obstructions.

But this has been discontinued on the order of the National Green Tribunal (NGT), which has sought revalidation of environment clearance of the project from MoEF.