Green clearance for POSCO plant ahead

The country's largest foreign direct investment project — POSCO's 12 million-tonne steel plant in Orissa — received a shot in the arm on Wednesday with the govenment saying that it expected environmental clearance for the project in a month.

The country's largest foreign direct investment project — POSCO's 12 million-tonne steel plant in Orissa — received a shot in the arm on Wednesday with the govenment saying that it expected environmental clearance for the project in a month.

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Last Friday, the environment ministry rejected environmental clearance for the project, citing violation of the Forest Rights Act. However, Steel Secretary Atul Chaturvedi on Wednesday said there may have been some misunderstanding.

"There is some difference in the facts related to the (Posco) case between the Orissa government and the Ministry of Environment. We expect these to get resolved soon."

The Korean steel major's endeavour to set up a joint venture with domestic steel major Steel Authority of India Ltd (SAIL) remained on track is likely to be finalised by November. The JV will set up a 1.5 million- tonne steel plant for an investment of up to Rs 12,000 crore.

"The plant will have a capacity of 1.5 million tonne and entail an investment of Rs 10,000-12,000 crore," Verma said. "No final decision has been taken on the equity structure in the JV but all possibilities are open."