Posco gets clearance for Orissa project

While granting approval to Orissa for diversion of 1,253 hectares of forest land for Pohang Steel Company (POSCO)'s steel project, environment minister Jairam Ramesh  said the South Korean steel major should not export raw material from the proposed project.

"In view of the state government's latest communication of April 29, final approval is accorded to the state government for diversion of 1253 hectares of forest land in favour of Posco," the minister said in a statement.

The clearance had been  granted to the company in January subject to certain conditions including ensuring rights of tribals and compensatory afforestation. Ramesh said, "Posco would also bear the cost of regeneration of an equivalent amount of open, degraded land in a district to be determined and indicated by the state government."

Pointing out that the MoU signed between the Orissa government and Posco signed in 2005 had expired last year and was ''yet to be renewed'', the minister said, "I would expect that the revised MoU between the state and Posco would be negotiated in such a manner that exports of the raw material are completely avoided."

Ramesh said the expired MoU contained provisions for the export of iron ore due to which he had reservations about the project.

Thus clearing the way for the biggest foreign direct investment in the country, Ramesh noted that the environment and forest clearance for the $12-billion Posco project generated much interest in India and abroad.