Odisha hopeful on future of Posco project

Company had signed a MoU with the state govt in 2005 for putting up a steel mill near Paradeep at a cost of $12 billion

The state government today exuded confidence on the future of the mega steel project proposed by Posco, billed as the country's biggest foreign direct investment (FDI) despite delay in grounding the project due to problems in procuring land and securing mining rights.

“Work on the Posco project has not started yet. But we are hopeful on the future of the project”, steel & mines minister Prafulla Mallick informed the state assembly via a written reply.

Posco India had entered into a memorandum of understanding (MoU) with the state government in June 2005 for putting up a 12 million tonne per annum (mtpa) steel mill near Paradeep at a cost of $12 billion. The project needs 4,004 acres in all. The proponent later redesigned the project, planning to set up eight mtpa in the first phase which needed 2,700 acres of land.

The state’s land acquisition agency Odisha Industrial Infrastructure Development Corporation (Idco) has acquired 2752.3 acres of land for the first phase. Idco has so far handed over 1,880.11 acres to Posco India, the minister said in the reply.

The remaining land is yet to be transferred to the company since it was yet to deposit land dues worth Rs 54 crore.

On the grant of prospecting licence (PL) over Khandadhar iron ore mines, Mallick said, the Centre has sought some more clarification on the lease. The Centre on October 10 this year had asked the state government to submit two separate proposals, one for the notified area of the mining lease and other for the non-notified area. In response, the state government has submitted the compliance on notified area spread over 2,082.50 hectares (ha) of Khandadhar iron ore deposits, the minister said.