Posco project likely to be delayed: Orissa govt

Faced with opposition from local people and entangled in official procedures, South Korean steel major Posco's project in Orissa is unlikely to meet the deadline of beginning its first phase by 2010.

"Under the prevailing situation, the Posco project is likely to be delayed," state Steel and Mines Minister Raghunath Mohanty told the Assembly today while replying to a question.

Posco had signed an MoU with the state government to set up a 12 mtpa steel plant near Paradip at an investment of Rs 51,000 crore on June 22, 2005.

The company, which requires 4,004 acre, has not been able to acquire land due to law and order problem created by people opposed to the project.

Of the 4,004 acre, 437.66 acres is private land, 2,958.79 acre forest land and 607.74 acre non-forest area, sources said adding that local people were in possession of government land.

Though the project made some progress in terms of getting first phase clearance on its forest diversion proposal from the Forest and Environment ministry, the company failed to make entry to the proposed plant site area near Paradip.