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Resource centre on India's rural distress
 
 

Posco to suffer as panel purview widened by Debabrata Mohanty

A week after the Ministry of Environment and Forests threw the Vedanta Aluminium project in Orissa into doldrums by denying final stage forest clearance, the fate of the 12 million tonne per annum steel project by Korean steelmaker Posco appears to be bleak after the ministry widened the ambit of the Meena Gupta panel looking into the steel project.

In July this year, the MoEF had formed a four-member panel headed by former MoEF secretary Meena Gupta to assess the implementation of the Forest Rights Act in the project area in Jagatsinghpur district. On August 5, the ministry issued an order banning acquisition of forest land for Posco’s proposed plant after a subgroup of N C Saxena panel looking into implementation of FRA pointed to violation of the Act. The Meena Gupta panel was specifically asked to also look into the rehabilitation measures.

But in its revised order, the ministry said the four-member panel now has to “review compliance of Environmental Impact Assessment, Coastal Regulaton Zone and other clearances granted by the central ministry as well as the state government”. The panel would also have to review compliance with statutory provisions, approvals, clearances and permissions under various statues, rules and notifications. The committee will have to submit its report by September 30.

The move comes just a couple of days after Naveen Patnaik met Prime Minister Manmohan Singh and told reporters that he has been assured of a speedy clearance to the Rs 54,000 crore Posco project as it involves the country’s largest foreign direct investment.

The Meena Gupta committee on Sunday finished its assessment of the implementation of the Forest Rights Act in the project site.