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LATEST NEWS UPDATES | Posco’s Karnataka steel plant plans in doldrums

Posco’s Karnataka steel plant plans in doldrums

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published Published on Jul 19, 2011   modified Modified on Jul 19, 2011

BangaloreThefate of South Korean steelmaker Posco's proposed plant in Karnataka remains uncertain with two groups of farmers holding different views on the project.

The government has already assured protesting farmers that the project would not come up in Gadag district. However, it is also waitingto see if the issue can be resolved as a separate group of farmers is offering land for the plant.

Karnataka industries minister Murugesh Nirani, who will meet officials from Posco this week, said the government was yet to withdraw the notification of land acquisition. As a section of farmers were willing to sell land, the government would wait a week for an outcome onthe issue before deciding on an alternative location, he said.

Posco has proposed to set up a 6 million tonnes per annum plant at aninvestment of R32,000 crore in Gadag's Mundargi taluk, located close toiron-ore rich Bellary.

Protests by farmers supported by religiousseers over the past month had forced the government to halt the processof acquiring the 3,382 acres notified for the plant last Wednesday. “Earlier, these people were nowhere in the picture. Everybody was against the project,” said a person associated with the Tontadarya Mutt,a religious institution in Gadag which has been spearheading the protests by local farmers. “The land mafia is behind them,” said this person, who declined to be named.

According to the district administration, about 150-200 people had given a letter of consent last Friday to sell their land if the government agreed to a list of 13 demands which include fixing land prices on par with neighbouring Bellary district and jobs.

The protests had started after notices were served on the land holders in May, and they sought help from the mutt. Around 20 acres belonging to the mutt, incidentally, also falls within the notified area. The farmers' opposition was on the basis that the notified area was fertile and that the plant would cause damage to the rich natural vegetation in a nearby range of hills.

According to an official, there are no major industries in Gadag and the government's push to locate more factories in the northern districtsis an attempt to develop the region and also de-congest Bangalore district.


http://www.financialexpress.com/news/Posco-s-Karnataka-steel-plant-plans-in-doldrums/819138/


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