In its report to environment minister Jairam Ramesh, the Forest Advisory Committee (FAC) is reported to have recommended halting the POSCO project.
In June 2005, the South Korean company had offered to set up one the biggest steel plants in the country, in Orissa, at an investment of $12 billion, making it the largest foreign direct investment in India.
However, the project has been delayed due to various reasons, including protests by affected communities against acquisition of their land for the project, environmental issues and violation of the Forest Rights Act.
The state government has, however, made it clear that there was no question of implementation of the Forest Rights Act again as the law has already been administered in its true spirit.
According to the state government, attempts to implement the Forest Rights Act in the project area all over again could spark violence.
Even as it alluded to the possibility of violence, the state government, citing its record of implementing the Act, has stressed that all claims in the project area have been settled.
Meanwhile, the POSCO review committee appointed by the environment ministry has stated in clear terms that the Forest Rights Act has not been fully implemented in the project area.