Odisha to buy land for Posco only after green clearance

BHUBANESWAR: The Odisha government would provide the required land to Posco India for its proposed 12-million-tonne integrated steel plant project near Paradip only after the project gets environment clearance from the Union ministry for forest and environment.

The Naveen Patnaik government does not want to anger the local people by forcibly acquiring land before the project has all the statutory clearances. Ironically, Posco India has to start the whole regulatory process afresh as most of the permissions have expired five-year time limit. For instance, the five-year time limit of the environment clearance for Posco's proposed captive port at Jatadhari mouth near Paradip expired on May 13. Similarly, the environmental clearance for the steel plant expired on July 18.

Adding to its woes, the South Korean steel major is also haunted by the legal quagmire with the Supreme Court yet to deliver its verdict on the state's recommendations for Khandadhar iron ore mines in favour of Posco India. The Odisha High Court has also put a spanner on the acquisition of 437.86 acres of private land by ordering an interim stay and the case is yet to be disposed off.

Posco suffered another setback when National Green Tribunal early this year ordered suspension on the environment nod given by the ministry of environment on January 31, last year. On top of it, the MoU between Posco and the state government has not been renewed despite several announcements. The MoU with Posco had lapsed since June 2010.