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LATEST NEWS UPDATES | Posco: Orissa to begin land acquisition soon by Sandeep Mishra

Posco: Orissa to begin land acquisition soon by Sandeep Mishra

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published Published on Feb 1, 2011   modified Modified on Feb 1, 2011

Enthused by the Centre's nod to Korean steel giant Posco's mega-steel plant, the Orissa government on Monday said it would soon resume land acquisition at the project site. At the same time, given its past experience with a reluctant environment ministry, the government said it will adopt a wait-and-watch approach on issues like mining and renewal of memorandum of understanding.

''We welcome the decision and thank the Union government and environment minister Jairam Ramesh for the approval, despite the delay,'' said Orissa steel and mines minister Raghunath Mohanty. ''The Posco project is important not just for Orissa but for the country as well, as it will provide employment and spur growth. We'll begin land acquisition as soon as possible,'' he added.

The government was forced to halt land acquisition for the $12 billion project — India's largest foreign direct investment bid — after the Central government's stop-work order on grounds of violation of Forest Rights Act 2006. The land to be used for the plant measured 1,253 ha.

Jairam Ramesh announced environment clearance for the South Korean company's proposed steel and captive port projects near Paradeep, but sought Orissa government's assurance that those claiming dependence on land in the project area were not categorized as traditional forest dwellers under forest rights act.

Posco's bid to access the Khandadhar iron ore reserves in Sundergarh, around 600 km from the proposed 12-million tonne per annum-capacity steel facility site, is also pending before the Supreme Court.

Not surprisingly, chief minister Naveen Patnaik reacted with caution. ''It's good news,'' said Naveen, hours after Jairam spoke in Delhi. Asked when will the state government renew its memorandum of understanding with the steel major, Naveen said, "We'll take appropriate action.'' The government had signed MoU with Posco on June 22, 2005, valid for five years.

Paradeep MLA and minister Damodar Rout sourced the controversy over forest law violations to wrongful recording of forest land and said people who cultivated betel vines on government land will be adequately compensated.

Posco welcomed Jairam's decision and said it appreciates the concerns of stakeholders on sustainability of environment and livelihood of affected people. ''We're committed to take sustainable green initiatives and effective measures for conserving land and marine environment of the area. We're also committed to create sustainable livelihood opportunities for the project affected people by implementing the rehabilitation and resettlement package,'' said a statement released by the company.

The Times of India, 1 February, 2011, http://timesofindia.indiatimes.com/india/-Posco-Orissa-to-begin-land-acquisition-soon-/articleshow/7400694.cms


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