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LATEST NEWS UPDATES | Orissa: POSCO trouble far from over

Orissa: POSCO trouble far from over

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published Published on Nov 2, 2010   modified Modified on Nov 2, 2010

Even after five-and-half years since its inception, the biggest foreign Direct Investment (FDI) for the country, the  POSCO steel project has failed to take off due to widespread opposition from several quarters.

Now, the 51,000 crore project has run into more trouble as the environment clearance to the project seems unlikely.

But the Orissa government has come to the fore, not just supporting the project but also moving the Supreme Court, filing a Special Leave Petition(SLP), challenging the High Court order setting aside allotment of a key iron ore mine to the South Korean firm.

"Government of Orissa on behalf of Steel & Mines department has filed the special leave petition for Khandadhar mines in Supreme Court," said Raghunath Mohanty the state minister of Industries, Steel & Mines.

Even though, three of the four members of a central panel, constituted to look into the implications of the project, have opposed the project, the Environment Ministry is under pressure from the Union Steel and Commerce Ministries as well as the Orissa government to take a favourable stand.

"It's also the responsibility of the Central government to see that such a major plant as POSCO takes off because do remember it is the biggest foreign direct investment in our country," said Naveen Patnaik, the Chief Minister of Orissa.

Apart from the hurdles posed by green laws, there are other controversial issues too that need to be settled.

"If they are producing three million ton steel giving them mining contract for 12 million ton, what will they do with the extra? They will have a captive mining and a captive port - what goes out of that who will check, who will know? " CPM leader Sitaram Yechury said.

With the project hitting one roadblock after another, there is little hope now that the project will get Centre's go ahead anytime soon.


NDTV, 2 November, 2010, http://www.ndtv.com/article/india/orissa-posco-trouble-far-from-over-63734


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