Posco to set up foundation as CSR initiave in Orissa

In a bid to get closer to the people, the South Korean steel major Posco today announced to set up a foundation to carry out CSR (corporate social responsibility) activities for its Orissa project. The proposed foundation to be named as Posco Foundation will take up vocational training, health services and feeding programme for the poor children in both the steel plant and mining sites among others. This was announced by Joon Yang Chung, chief executive officer (CEO), Posco group after meeting the Orissa chief minister Naveen Patnaik in the state secretariat here.“ It will be a win-win situation both for the company and the local people”, Chung said.

Describing his discussion with Patnaik as very fruitful, he said various measures aimed at expediting the Orissa project was discussed. Chung also stated that Posco will appoint the best consultant in the country for Orissa steel project. On the issue of land acquisition, he said, the Orissa government is making all efforts and the company will support the state government in its endeavor. Sources said, various aspects of the project like forest clearance and mining issues also figured during the discussion.

Chung’s visit assumes importance as the state steel and mines minister is slated to review the progress of the mega steel projects in the state on 17 September.

The South Korean steel major, proposing to set up a 12 million tonne integrated steel plant near Paradeep in Orissa, has already stated that it will separate its iron ore mining operation from the steel project to expedite work on the steel plant. It hoped to start ground leveling work for the project early next year. The company, however, ruled out the possibility of leaving out Dhinkia, the epicenter of anti-Posco agitation in the project area, from the original site plan. It was speculated that the company may drop this village from the site map to circumvent opposition to its project.

It may be noted the company had signed MoU with the state government for setting up of the 12 million tonne, Rs 51,000 crore project, billed as the largest FDI venture in the country, in 2005. But the project has failed to take off due to the stiff opposition from the locals to the land acquisition. In the process, the start of construction of the plant has been delayed by about two years.