The company's Rs 52,000-crore project is likely to take its first small step forward next week, when the Orissa govt is expected to issue a notification for land acquisition for mining
KOLKATA: Posco’s 12-million tonne, Rs 52,000-crore project is likely to take its first small step forward next week, when the Orissa government is expected to issue a notification for land acquisition for mining.
The land acquisition will be in Malangtoli and Gandhamardhan regions in Orissa which is estimated to have deposits of a shade over Posco’s requirement of 600 million tonnes for 30 years.
Sources in the state government said that following the notification, which will enable Posco to take possession of land, the Korean steel major will subsequently be issued with a ‘prospecting licence’. ‘
With this licence, Posco will start prospecting for iron ore in Malangtoli and Gandhamardhan, to get a definitive estimate of the total iron ore reserves in this belt.
Incidentally, these two iron ore deposits had been earmarked in the mid-nineties for the proposed mining joint venture of Rio Tinto and Orissa Mining Corporation, which was subsequently shelved.
Posco plans to put up a 12-million integrated steel project in Paradip, Orissa in three phases, entailing investments of around Rs 52,000 crore.
However, sources in the government said that the land acquisition notification is expected to spark off a fresh round of offensive from those opposed to the project on environment grounds.
The sources said that the Supreme Court adverse strictures on mining operations of Vedanta Aluminium, which is putting up an aluminium refinery in Kalahandi (first reported in DNA’s September 24 issue), has emboldened environmental activists to step up agitation against the Posco project.
A section of the state Congress, opposing the memorandum of understanding that the Orissa government has signed with Posco, has already sought intervention of UPA chairperson, Sonia Gandhi.
But those backing foreign direct investment in steel in the state pointed out that the Prime Minister’s Office has already gone into the details of the project and met a delegation of Posco officials and has subsequently been backing the project.
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