Detailing of Posco Project

Topics: Orissa, Supreme Court of the United States, Iron ore Pages: 3 (834 words) Published: March 5, 2013
A land acquisition drive for a Posco steel mill in Orissa’s Jagatsinghpur district, which was scheduled to start on Monday, has failed to take off. “The work was to recommence today. But due to unavoidable reasons, it could not be taken up. It’ll start soon,” Paradip additional district magistrate Surajit Das said. The land acquisition work had been suspended in the area after violent protests on 10 June 2011. The state government has acquired about 2,000 acres for the project and requires an additional 700 acres for the project to start. The district administration had sought cooperation of local villagers to acquire the additional 700 acres of forest land for the South Korean steel firm.

After a wait of seven long years, the greenfield steel project of Posco in Orissa's Jagatsinghpur district may be a reality with the state government readying an instrument of renewal for the project. State Steel and Mines Minister Raghunath Mohanty said that an 'instrument of renewal' is being processed by his department which would soon be sent to the Chief Minister for his approval. The instrument was necessitated after the Law department objected to renewal of the expired MoU with the South Korean steelmaker. The MoU, which was signed with Posco on June 22, 2005, expired on June 22, 2010. The instrument will be a tripartite agreement involving Posco, Posco India and the Orissa government. Mohanty said that Posco India has agreed to three conditions set by the state government. These are setting up downstream industries near the project area, jobs to local people, and swapping of iron ore within India. In August 2010, Posco had objected to the state government clause of reserving 90 per cent jobs in the unskilled and semi-skilled category, up to 60 per cent in skilled category and 30 per cent for the supervisory and managerial cadre for local people. However, the company later agreed to it. Earlier, several rounds of talks between state officials and company...
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