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LATEST NEWS UPDATES | Jairam Ramesh clears Posco project

Jairam Ramesh clears Posco project

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published Published on May 3, 2011   modified Modified on May 3, 2011
The Rs 54,000 crore Posco integrated steel plant got the final clearance from Union environment and forests ministry on Monday. Jairam Ramesh gave the nod for the pending forest clearance to the state government, paving the way for the Korean steel giant to acquire the forest land required for the project.

In January, Ramesh had put one last condition before the state government to acquire the forest land. He had asked for an assurance from the state that no rights of people existed on the land under the Forest Rights Act. The state sent its assurance but Ramesh, having received evidence to the contrary, asked the Naveen Patnaik government to come back again with clarity.

The state government wrote back to the Centre on April 29 claiming that the resolutions of the two villages – Govindpur and Dhinkia -- opposing the plant and claiming community rights over the forests were illegal. Ramesh moved quickly to decide in favour of the state government, dismissing the village resolutions that he had a copy of.

For long under pressure from the PMO on the project, passing the order in favour of the state government, Ramesh noted, "Faith and trust in what the state government says is an essential pillar of cooperative federalism." He decided to pass the buck for adhering to the Forest Rights Act to the state saying, "The primary responsibility for implementing the Forest Rights Act is that of the state government."

Ramesh had earlier bent backwards to accommodate the project by rejecting the recommendations of three of his own committees, including a statutory one. All three had recommended that the provisions of FRA had not been followed and that the project should be rejected. Orissa, on the other hand, continued to claim that no one had rights over the land it wanted to hand over to Posco. Ramesh discarded his own directive which required village councils to pass resolutions in favour of the project when the state government was unable to furnish them.

Attempting to pre-empt criticism over his bending rules and regulations, Ramesh said, "The implementation of both the FRA and the August 2009 guideline is a learning and evolving process since we are still in largely unchartered territory." The August 2009 order by Ramesh made it mandatory for the state government to submit village resolutions in favour of the project that Orissa failed to.

In his order, Ramesh said, "I would expect that the revised MOU between the state and Posco would be negotiated in such a manner that exports of raw material are completely avoided."

Suggesting that an understanding had been built between the Centre, state and the Korean company on the issue, Posco India vice-president Vikas Sharan reportedly told agencies on Monday, "There were no plans for export of iron ore from the project and now also we do not intend to do any exports."

The Times of India, 3 May, 2011, http://timesofindia.indiatimes.com/india/Jairam-Ramesh-clears-Posco-project/articleshow/8148693.cms


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