The Hindu Business Line : Long wait for Posco’s steel project in Orissa

Awaiting clearance
State yet to re-recommend its application for grant of prospecting licence.
Diversion of forest land earmarked for plant site pending before apex court.

Prafulla Das

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Bhubaneswar, June 7 When South Korean steelmaker POSCO signed an agreement with the Orissa Government in June 2005 for a 12-million-tonne integrated steel plant, its officials were hopeful of commissioning 3 million tonnes in the first phase, between 2007 and 2010.

But a look at a message from Mr Soung-sik Cho, POSCO-India’s Chairman-cum-Managing Director, published in the May 2008 issue of the company’s in-house newsletter, shows how the company has been waiting for various clearances for three years after inking the MoU.

“May is a month which tests our endurance. It signifies a long wait, amidst soaring temperature and sweltering heat, for the cool rains and lovely smell of wet-earth. For our project also, this month is going to be one of patience, perseverance and enduring hope,” Mr Cho said.

In his message, Mr Cho refers to the company’s wait for the State Government’s re-recommendation of its case to the Centre for grant of prospecting licence for iron ore mines; diversion of forest land for the steel plant site; clearance for water-supply pipeline; and acceptance of the benefits of the project by all the people in the proposed site-area.

“Though it is a difficult month for us, I advise the prudent use of time for polishing future plans and systemisation of all current process,” Mr Cho said in his message.

Asked about progress in obtaining clearances, a senior company official confirmed on Saturday that none of them had come through till date.

The State is yet to re-recommend the company’s application for grant of prospecting licence. The matter pertaining to diversion of forest land in the area earmarked for the steel mill in Jagatsinghpur district is pending before the Supreme Court, and the next hearing is likely to take place on July 18, the official said.

Out of the 4,004 acres required by the company for the steel plant, forest diversion clearance was required for 3,097 acres. The State Government has not been able to hand over any land to the company so far primarily due to opposition from the local people.

There are other tell-tale signs from the company’s Web site that there has been no progress — the company has not posted any press release after February 22, there are no tender notices in the e-procurement section, and the careers section says “there are no openings currently”. The post of Nodal Officer for the project is lying vacant since the last week of April. The company is preparing to announce a revised rehabilitation and resettlement package for the to-be-displaced people.

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