We are not quitting Orissa, says Posco

Talks continue with protestors to win them over with the help of state govt.

Posco-India, the Korean steel giant’s subsidiary for the troubled project for a mega unit in Orissa, today said it had no plans to move out of the state.

“We have never ever considered relocating the site,” said Saroj Mohapatra, senior general manager, in response to reports in a section of the media that Posco was planning to move out of Orissa.

The reports quoted Union mines minister B K Handique attributing this move to the resistance of locals to land acquisition for the project. “We are committed to the project in Orissa and confident of building it with full understanding, cooperation and support of the local people,” Mohapatra said.

The South Korean major proposed to set up a 12 million tonne steel plant near Paradeep at an estimated cost of Rs 51,000 crore, billed as the biggest foreign direct investment for any single project in the country. However, the project has not made much headway since the signing of the agreement in June 2005, due to stiff opposition of a section of the affected villagers to the land acquisition process.

The company required 4,004 acres of land, of which 3,566 acres are government land and 438 acres private land. Of the government patch, 2,958.79 acres were categorised as forest land for which the Supreme Court last year had allowed diversion on condition of fulfillment of some statutory requirements.

The Posco official said instead of thinking on changing the site of the project, the company, with the support of the district administration, is engaged in negotiation with the affected villagers on issues like compensation, resettlement and rehabilitation.

The company has a plan for alternative engagement to the landless people of the area. There are about 3,500 people in the age group of 18 to 40 in the project-affected villages, of which about 1,500 are landless labourers, mostly living by working on betel vines and prawn gheries on encroached government land. These landless labours form the core of the opposition to the project.

To win them over, the company plans to provide alternative employment even before the project comes up. For the purpose, it proposes to construct a 10-km long marine road from Dhikia in the project site up to Paradeep. Apart saving the local people from a tidal wave, the proposed road will provide jobs to hundreds of people and work as an important communication link for transportation of raw materials for implementation of the 12 mtpa steel plant.

Meanwhile, the Orissa government also denied any knowledge of the plan by the company to shift the project location.

“The Posco-India CMD, Choon Kuhn-kwon assured me today that the company is committed to build the project at the present site in Orissa,” said Ashok Dalwai, the state steel and mines secretary. The state government is extending all help to the project and the district administration is negotiating with the local villagers to expedite work on it, he added.

The state government has given over 500 acres of non-forest government land to Posco and also recommended to the Centre for issue of a prospecting licence for the Khandadhar mines to the company.