Posco to get balance land after lifting of NGT stay order

Company is handed over 1,703 of 2,700 acres needed for first phase work

The state government will hand over the required land for the start of first phase work of an integrated steel plant proposed by Posco in Jagatsingpur district after the lifting of the stay order of the National Green Tribunal (NGT) on cutting of trees on the acquired land.

“The company has informed us to start construction work for an eight million tonnes capacity steel plant on 2,700 acres of land in the first phase,” said state steel and mines minister Rajanikant Singh in a written reply to the state assembly.

The government has already handed over 1,703 acres to the company through the land acquisition agency, Industrial Infrastructure Development Corporation of Odisha (Idco) and the balance land will be given after the lifting of the stay order put by the NGT, he added.

In May 2013, the NGT had ordered a status quo on tree felling on the site of Posco's steel plant in Odisha until a decision is taken on its lapsed environmental clearance.

“It is contended before us now that large number of trees are being felled/cut by the Project Proponent without permission of any competent authority. In the facts and circumstance aforesaid, we direct that the status quo in regard of cutting of trees as of today shall be maintained”, NGT said in its order.

Meanwhile, Posco-India has started construction of boundary wall at its plant site earlier this week ahead of the visit of South Korean President Park Geun-hye, scheduled in January 2014.The construction work was followed by stone laying ceremony on December 6.

As per a MoU signed with the state government in June, 2005, Posco intended to set up a 12 million tonne steel plant at a cost of 12 billion dollar. It required 4004 acres land for the project. But with protracted agitation over land acquisition delaying the project, the company had later proposed to start work on at least 8 million tonne steel capacity in the first phase if it is provided 2,700 acres of land.

The company said, it would expand the capacity to the intended 12 mtpa as and when it received the rest of the required 4,004 acres.

It may be noted the state government’s MoU with Posco has lapsed in June, 2010. With the state law department opining against renewal of the MoU after expiry of the pact, it is decided to sign a tripartite agreement involving the Odisha government, Posco India and its parent firm- South Korean steel behemoth Posco.