Posco project to figure in India-Korea joint meeting

Protracted agitation of locals over land acquisitions has impeded the progress of project

The much delayed $12- billion Posco steel project is likely to find place in the agenda of the 7th India-Republic of Korea joint commission meeting (JCM) scheduled to be held in November.

The meeting will be held between the Indian external affairs minister and foreign minister of the Republic of Korea on November 9, at Hyderabad House in New Delhi.

The steel behemoth had signed a pact with the state government on June 22, 2005, for setting up a 12 million tonne per annum (mtpa) steel plant near Paradip in coastal Odisha and had sought 4,004 acres of land for the project.

But protracted agitation of locals over land acquisitions has impeded the progress of the project.

The state government has recently completed acquisition of 2,700 acres of land at the site to enable the company to set up first phase of the project comprising 8 million tonne capacity.  

The original MoU signed with Posco India had lapsed in June 21, 2010, and a fresh pact is yet to be signed. It has been decided to sign a tripartite agreement involving the Odisha government, Posco India and its parent firm- Posco based in Seoul.

Meanwhile, the state industries department has asked Industrial Promotion and Investment Corporation of Odisha to Limited (Ipicol), Odisha Industrial Infrastructure Development Corporation (Idco) and District Collector, Jagatsingpur district to submit latest status report on the project.

“Principal secretary, industries, will attend the meeting. It is ascertained that the matter of Posco project may be discussed in the meeting. It is, therefore, requested that an up-to-date status of Posco project may be furnished to this department early for kind appraisal of principal secretary, industries,” P K Dash, joint secretary, industries department wrote.

Earlier this month, South Korean ambassador to India Joon-gyu Lee discussed with Chief Minister Naveen Patnaik on the project at Bhubaneswar. He told media persons after the meeting that he was optimistic about start of work on Posco plant soon.

“The state government has already acquired land needed for the Posco project. I hope work on the project will start early next year. We would like the Posco project to be inaugurated before our President’s visit to India,” Lee said. South Korean President, Park Geun-hye is slated to be the chief guest at the Republic Day celebration in New Delhi on January 26, 2014.