Orissa govt pre-empts land acquisition bill, completes land acquisition for Posco

Acquires 2,700 acres of land required for first phase of mega steel project near Paradip

The Jagatsinghpur district administration in Odisha has completed the process of acquiring 2,700 acres of land required for first phase of the mega steel project proposed by Posco near Paradip.

This is a major milestone for the beleaguered project, which has been facing local opposition to land acquisition eversince the South Korean steel major singed a MoU with the Odisha government in June, 2005.

“We have acquired 2700 acres required for first phase of Posco project.  The land will soon be handed over to Industrial Infrastructure Development Corporation of Odisha (Idco), which will pass it on to the company”, said Surjit Das, additional district magistrate, Paradip. The first phase envisaged 8 million tonne steel capacity.

On the last day of the current phase of land acquisition drive, the administration demolished 26 betel vines and paid about Rs 41 lakh compensation to the affected farmers.

With this, the total number of betel vines dismantled to make way for the project comes to 1062 and total compensation paid Rs 20 crore (Rs 18 crore for betel vines and Rs 2 crore towards various fruit bearing trees on the acquired land).

Sources said, the district administration has acquired 2858 acres at the project site, out of which 2700 acres will be given to Posco with rest land being earmarked for establishment of ancillary industries.

No compensation has been paid towards land as these vines and tree were planted by the villagers on the government land. In fact, out of 4004 acres originally asked by Posco in three panchayats of Dhinkia, Nuagaon and Gadakujang, near port town of Paradip, only 438 acres were private land. The Odisha High Court has stayed buying of private land for the project while hearing to a public interest ligation (PIL) on the matter.

Due to stiff resistance to the land acquisition process by the locals, Posco had altered its project plan and decided to set up the first phase comprising 8 million tonne capacity if it is provided 2700 acres contiguous land patch. The company said, it would increase the capacity to originally envisaged 12 million tonne as and when it was provided the rest land.  

Despite completion of land acquisition for the first phase of the project, sources said, it would take some time before the South Korean firm can start work on the project. The environment clearance of the project has been suspended by the National Green Tribunal (NGT) which has asked the Union Ministry of Environment and Forest (MoEF) to revalidate the clearance. Posco cannot start work until the NGT lifts the suspension order, sources added.

“Pending clean chit from the NGT, we will go for trench digging and other preparatory works for boundary wall construction”, pointed out a senior official.

Similarly, the Odisha government has not signed a fresh pact with the company following expiry of its MoU in June 2010 and the Union Mines ministry is yet to take a call on granting it prospecting licence for Khadadhar iron ore mines after the Supreme Court upheld the state government’s recommendation to this effect.