POSCO, Mittal take-off in Orissa hangs in balance

The two global steel makers, which signed Memorandum of Understanding (MoU) with the Orissa government three years back, have threatened to withdraw their projects, if Orissa government could not proceed with land acquisition.        

"The project work is already too delayed. We have given deadline to the Orissa government to hand over the required land," a senior POSCO official said.
        
The South Korea steel giant-POSCO, had singed a MoU with Orissa government to put up a Rs 52,000 crore steel plant, on June 2005 and had declared to start by early 2009 at Jagatsinghpur district.        

The global steel giant had sought 4,004 acre land for its 12 MTPA greenfield steel unit from State government. But till now it is struggling to get half of the promised land.        
The Korean steel giant has already expressed concern over the delay by the Orissa government in recommending the Kandahar mine to it.        

The steelmaker is also seeking expeditious approval of the forest division clearance by Supreme Court Empowered Committee. It has also asked the State government to hand it over the non-forest government land soon.        

The world's biggest steelmaker Arcelor Mittal and Tata Steel are also struggling to set up their plants in the state.