POSCO-India spent only Rs 176 crore in Orissa project

BHUBANESWAR: POSCO-India has so far spent only Rs 176 crore, of the planned Rs 51,000 crore investment in the proposed mega steel plant in Orissa, considered the largest FDI in the country, state Steel and Mines Minister Pradip Kumar Amat said on Wednesday.

This worked out to only 0.34 per cent of its planned investment for the 12mtpa greenfield steel plant near Paradip, Amat said replying to a written question in the assembly on Wednesday.

Though POSCO-India signed a MoU with the state government way back in June 2005, it has so far failed to acquire the land for the project due to stiff opposition from the public.

The state government has already recommended POSCO-India's name for the prospecting licence over iron rich Khandadhar mines, Amat said, adding the Centre would take a final decision in this regard.

Replying to another question, he said though the South Korean company had asked for more land, the government recommended only 2500 hectares.

As many as 148 firms had made 227 applications seeking prospecting licence and mining licence over Khandadhar iron ore mines.

On forest land diversion proposal of POSCO-India, the minister said out of the 4004 acres required by it, nearly 2900 acres were identified as forest category.

"Though Supreme Court had already cleared the forest land diversion proposal, the Forest and Environment Ministry was yet to accord its permission," he said.