'Posco won't pull out of Orissa'

BHUBANESWAR: South Korea’s Posco said it will not pull out of Orissa amid media reports that it is looking for an alternate base in India. Both Posco India and the Naveen Patnaik government strongly dismissed speculation in a section of media that the South Korean steel major was planning to shift its proposed 12-million-tonne steel project to Kulti in West Bengal.

Posco was facing problems in acquiring land for its Rs 52,000-crore plant near Paradip.

“I’m confident Posco is not shifting its project anywhere. We have talked to them and they have assured us they will execute the 12 million tonne project in Orissa,” state steel and mines secretary Ashok Dalwai told ET, adding that the state government has already facilitated the mining lease in favour of the steel behemoth.

Senior officials at Posco India also corroborated Mr Dalwai by affirming that the company was committed to the project. “The project is extremely important of us and we remain committed to it. Things in Orissa are moving and we are hopeful of significant progress,” Posco India GM (external affairs) Simant Mohanty told ET.

Mr Mohanty said the rehabilitation package for betel vine owners and labourers has already has been announced. “The company has already deposited Rs 105 crore towards compensatory afforestation to meet the conditions for using forest land for building the steel plant,” adding that he hoped the administration would be able to hand over land at the earliest.

Posco is battling hard to find a solution to the ongoing land dispute for its Rs 52,000-crore plant near Paradip even as it recently got clearance from the Union ministry of forest and environment to acquire forest land for the biggest FDI project.