Meltdown not to hit Posco Orissa project | business | Hindustan Times
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Meltdown not to hit Posco Orissa project

The global financial meltdown will not affect in any manner the Rs 51,000-crore Posco steel project in Orissa.

business Updated: Nov 03, 2008 21:29 IST
Soumyajit Pattnaik

The global financial meltdown will not affect in any manner the Rs 51,000-crore Posco steel project in Orissa.

After meeting Chief Secretary Ajit Tripathy here, Posco-India director GW Sung said on Monday, “The international financial crisis will not hit Posco’s project in Orissa”.

Meanwhile, Posco’s forest diversion plan has got the stage-1 clearance. Out of the total 4,004 acres for the project near Paradip, 2,958 acres are demarcated as forest land.

“The company has committed while seeking environmental clearance for the steel plant that 25 per cent of the land earmarked for the project will be utilized for green coverage,” said a Posco official.

Posco has committed to grow 2 million trees inside the project area in Jagatsinghpur dsitrict. “Besides, the company has also agreed to provide for compulsory afforestation as per forest diversion proposal approved by the Supreme Court,” he said. Nearly 2.8 lakh trees would be felled for the steel project in Jagatsinghpur district.

South Korean steel major Posco signed a MoU with the Orissa government in June 2005 to set up a 12 million tonne (MT) steel plant in Jagatsinghur district with an investment of $12 billion (Rs 51,000 crore). Due to local protests and other factors, the foundation stone for the project could not be laid till date.