POSCO take-off in Orissa hangs in balance

MUMBAI: Uncertainty looms large over the take-off of steel giant POSCO's Rs 51,000 crore project in Orissa due to inordinate delay in land acquisition.

"The project work is already too delayed. We have given deadline to the Orissa government to hand over the required land," a senior POSCO official told PTI today.

The South Korea steel giant-POSCO had singed an agreement with Orissa government to put up a Rs 51,000 crore steel plant on June 2005 and declared to start by early 2009 at Jagatsinghpur district.

The global steel giant had sought 4,004 acre land for its 12 MTPA greenfield steel unit from the state government. But till now it is struggling to get half of the promised land.

The Korean steel giant has already expressed concern over the delay by the Orissa government in recommending the Khandahar mine to it.

The steel maker is also seeking expeditious approval of the forest division clearance by Supreme Court Empowered Committee. It has also asked the state government to hand it over the non-forest government land soon.