Tuesday, 03 May 2011
The Indian government gave final approval to South Korea's POSCO to build a giant USD 12 billion steel plant in the country's biggest foreign investment deal since the launch of market reforms in 1991.
Mr Jairam Ramesh Environment Minister said in a statement that "Final approval is accorded to the state government for diversion of 1,253 hectares of forest land in favor of POSCO."
Mr Ramesh said the approval was conditional on POSCO regenerating an equal area of forest in a spot chosen by Orissa as well as paying for the land.
Mr Ramesh said that the plant has "considerable economic, technological and strategic significance, at the same time laws on the environment and forests must be implemented seriously.
The plant in the eastern state of Orissa has been strongly opposed by locals who have campaigned since 2005 to save the farmland and forests needed for the project.
Mr Ramesh said he hopes that the new agreement would avoid allowing POSCO to export any raw material meant for the Orissa mill. The two sides are expected to renew their MoU and Ramesh said he hoped that the new agreement would avoid allowing POSCO to export any raw material meant for the Orissa mill.
POSCO signed an agreement with the Orissa state government in 2005 and it was scheduled to begin production by the end of 2011. But protests, environmental worries and litigation over a related mining concession have delayed what is India's biggest foreign direct investment.
While decision clears the way for the plant to be built POSCO does face a legal challenge from a local firm also seeking a mining concession. That decision on the mining concession lies with the Supreme Court, but the litigation is unlikely to hold back the mill's construction now the green nod has been given. (sourced from ET)
The Indian government gave final approval to South Korea's POSCO to build a giant USD 12 billion steel plant in the country's biggest foreign investment deal since the launch of market reforms in 1991.
Mr Jairam Ramesh Environment Minister said in a statement that "Final approval is accorded to the state government for diversion of 1,253 hectares of forest land in favor of POSCO."
Mr Ramesh said the approval was conditional on POSCO regenerating an equal area of forest in a spot chosen by Orissa as well as paying for the land.
Mr Ramesh said that the plant has "considerable economic, technological and strategic significance, at the same time laws on the environment and forests must be implemented seriously.
The plant in the eastern state of Orissa has been strongly opposed by locals who have campaigned since 2005 to save the farmland and forests needed for the project.
Mr Ramesh said he hopes that the new agreement would avoid allowing POSCO to export any raw material meant for the Orissa mill. The two sides are expected to renew their MoU and Ramesh said he hoped that the new agreement would avoid allowing POSCO to export any raw material meant for the Orissa mill.
POSCO signed an agreement with the Orissa state government in 2005 and it was scheduled to begin production by the end of 2011. But protests, environmental worries and litigation over a related mining concession have delayed what is India's biggest foreign direct investment.
While decision clears the way for the plant to be built POSCO does face a legal challenge from a local firm also seeking a mining concession. That decision on the mining concession lies with the Supreme Court, but the litigation is unlikely to hold back the mill's construction now the green nod has been given. (sourced from ET)
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