Bizodisha Bureau, Bhubaneswar, April 23, 2015 :

The mega steel plant project proposed by South Korean steel major, Posco is not going to take off with the Odisha government planning to cancel the land acquired for the project near Paradip in the port town of Paradip.

Posco also faces problem on its fervent bid for captive mine as now it has to bid for iron ore mines as per the provisions of the amended MMDR Act 2015. The Centre has turned down Odisha government’s request for allocating Kandadhar iron ore mines to Posco as part of an international commitment.

The fourth largest steel company now is exploring the possibility of setting up a plant in neighbouring Jharkhand in collaboration with public sector steel behemoth SAIL.

If Posco finally backs out, it will be the second mega Foreign Direct Investment [FDI] project to end in whimper.

The state owned Odisha Industrial and Infrastructure Development Corporation [IDCO], which acquires land for the industries has asked the Jagatsinghpur collector to take possession of the 1703 acres of land already handed over to it. The Idco has attributed the steel giant’s failure to pay about Rs 73 crore towards premium and Net Payment Value (NPV) of the land, officials said.

IDCO has also written to Posco India, the Indian arm of the steel major in this connection.

Posco had finally sought 2700 acre of land for its scaled down steel project of 8 MTPA out of which IDCO has already given advance possession of 1703.56 acres while holding back the remaining 1000 acres of land acquired by it for the project.

“For the revised 8 MTPA steel plant, Posco India requires Ac.2700 of land out of which Ac. 1703.56 of land is in stage of advance possession and lease had already been handed to Posco India,” IDCO’s letter said.

Posco India is yet to make outstanding payment of Rs 54.22 crore towards premium of the land and Rs 18.89 crore towards NPV against de-reserved forest land.

“Balance land to the extent of Ac 1088.59 was sanctioned vide letter No. 3438 dt. 30.12.2013 and letter No. 3434 30.12.2013 and will be leased out to Posco India soon after payment of premium amounting to Rs 54, 22, 92,318.00. For the de-reserved forest land, Net Payment Value (NPV) amounting Rs 18, 79, 83, 750/- (Rupees Eighteen crore seventy-nine lakh eighty-three thousand seven hundred fifty) is to be deposited by Posco,” the letter stated.

“Several reminders vide letter No.2577 dt. 05.02.2014 and 4650 dt. 03.03.2014 were issued to Posco India to deposit the sanctioned amount but the company has not deposited it till now,” the letter adds.