South Korean steel major Posco has got final clearance from the Ministry of Environment and Forests for acquiring forest land in state for its $12 billion steel plant project, a company official said today.
"We have received final forest clearance from the ministry," Posco-India general manager (external relation) Mr Simanta Mohanty told IANS.
He said the ministry gave the clearance on Wednesday.
Posco, one of the world's biggest steel makers, signed a deal with the state government in June 2005 to set up the steel plant near the port town of Paradeep in the coastal district of Jagatsinghpur, some 100 km from here, by 2016.
The steel maker acquired about 4,004 acres of land for its project, of which 2,900 acres was forest land. Mr Mohanty said the company has already deposited Rs 105 crore with the state government towards compensatory afforestation.
Thanking the Central and the state government for extending consistent support to the project, he said the company is committed to creating a green belt of two million trees in the project area.
"We are ready to commence work any time after land is handed over to us," he said.
The Posco project in Orissa has already had a delay of more than two years due to protests by local residents.
Nearly 3,600 acres of land out of required 4,004 acres fall under the government category, while the rest remains under private control.
“We are ready to commence work on the much-awaited project any day now,” Mohanty said, adding that the foundation stone could be laid any day.
Construction of project was originally scheduled to start in April 2008. The plant in the state's Jagatsingpur district, involving one of the biggest FDI, was faced with the twin challenges of land acquisition and regulatory clearances. Apart delays in land acquistion, it is awaiting mining leases.
“We gave the stage II (final) forest clearance to Posco India yesterday, while the stage I clearnace was given in 2008,” a top forest and environment ministry official said.
Last year, the Supreme Court green bench had given clearance to the company for use of forest land.
Keen on fast clearance of the project, the steel ministry had written to Orissa to help resolve the land issue.
The company does not have physical possession of the land as yet but is gearing up for the foundation stone-laying ceremony as on 26 January, 2010. South Korean President Lee MyungBak is scheduled to lay the foundation stone for the project.
“We now hope the state government gives physical possession of the land to us immediately after the ministry for forest and environment has accorded clearance for stage II,” Mr Mohanty said.