Posco may get green nod in a month

NEW DELHI: The environment ministry may clear Korean steel major Posco’s Rs 54,000-crore steel project in Orissa in a month’s time, a senior government official said. The ministry had stopped the state government from providing 2,959 acres of forest land citing violation of environment protection laws.

“Posco issue would get resolved soon, may be in a month’s time,” steel secretary Atul Chaturvedi said on Wednesday.

The steel project has been controversial ever since the Orissa government gave its approval to Posco for setting up a 12-million tonne steel plant in June 2005. The latest hurdle has come from the environment ministry which evoked the Forest Rights Act (FRA) to stop land acquisition for the project on the recommendation of a joint panel of the environment and tribal affairs ministries.

The land acquisition process started in July 27 and was abandoned after the panel’s visit to the project site. Posco requires 4,004 acres to build the steel plant in Jagatsinghpur district of Orissa and is awaiting the environment ministry’s nod for 2,959 acres of forest land. It has already got 608 acres of non-forest land from the state government on lease and is currently negotiating deals for 437 acres with individual owners.

Meanwhile, Mr Chaturvedi said steel demand and its price are showing signs of improvement.

“Steel prices are expected to increase by the month-end mainly due to revival in demand in view of the end of the monsoon season” said SAIL chairman CS Verma, who was also at the meeting.