South Korean steelmaker POSCO has received final approval to acquire forest land needed for its long-delayed $12 billion India project, a company spokesman said on Friday. The steel maker needs about 4,000 acres (1,600 hectares) of land for its project in eastern Orissa state, of which 2,900 acres is forested.
"We have got final forest clearance. We are ready to commence work any time after land is handed over to us," Simanta Mohanty, POSCO India's General Manager of External Relations, told Reuters. POSCO signed a memorandum of understanding with Orissa in June 2005 for the 12 million-tonne-capacity steel plant to be built in three phases by 2016, with production scheduled to begin by the end of 2011 at the completion of the first phase.
But the project, touted as India's largest foreign direct investment, has been delayed by more than two years due to protests by farmers who fear losing their livelihood. In August 2008. India's top court allowed the company use of tracts of forest land, but the protests continued, reflecting a larger stand-off between industry and farmers unwilling to give up land. Other projects, including Tata Motors' plant for the cheap Nano car, have been delayed or relocated due to similar protests in India, where two-thirds of the population depends on agriculture for a living.
Lee Dong-hee, POSCO's president and chief investment officer, had said in August the land acquisition was expected to be completed by the end of 2009 and land levelling work would start in early 2010. With the grant of the mining lease delayed by litigation, POSCO plans to start construction of the steel plant first. The company requires 20 million tonnes of iron ore per year over 30 years for steel production at full capacity.
Comments
Comments are closed.