By Bizodisha Bhubaneswar, April 29, 2017 : South Korean steel giant, Posco’s originally planned 12 million ton steel plant plan near Paradip Port in Odisha is now history.

India’s biggest FDI project with a planned investment of $12 billion finally saw its end with the Odisha government on Thursday cancelling 1,880 acres of forest and non-forest land handed over to the company for the steel plant to be built near Paradip.

The Odisha government on Saturday formally announced that it has cancelled
the land allotted to South Korean steel major Posco for setting up the steel facility near Paradip.

“The state ­owned Industrial Infrastructure Development Corporation (IDCO) has informed Posco­India in a letter that the land allotted to it has been cancelled as the land was not utilised even three years after the allotment,” Industries Minister Debi Prasad Mishra told reporters.

Also, Posco had defaulted on land dues worth Rs 54 crore for which Idco had held back transfer of balance land to the company.

“We had asked Posco India to clear the land dues but the company communicated that it has no plan to set up the steel project. The land was kept idle for three years and there was no visible sign of any construction activity by the company. Idco has written to Posco two days back to scrap the land allotment”, Mishra said.

The state government has approved the taking back of land acquired for the Posco steel project to its land bank. Idco has already initiated work on erecting a compound wall around the land to save it from encroachment and avert law and order issues.

The cancellation of land allotment to Posco has opened up a window of opportunity for Sajjan Jindal-led JSW Steel. The steel company has been eyeing this land in Odisha for its proposed 10 million tonne steel mill where it has committed an investment of Rs 50,000 crore together with the setting up of other associated infrastructure.

Jindal called on the Odisha chief secretary and other senior government officials on Friday evening to discuss his project plans.

“Our company is very keen to invest on a steel plant in Odisha. The Posco site is one of the possibilities. Besides, other potential sites are also being examined’’, Jindal said.

Posco India had signed a memorandum of understanding (MoU) with the Odisha government on June 22, 2005 to put up a 12 million tonne steel plant near Paradip. The project never showed any sign of taking off at the ground with protracted agitation by the project affected people and the company’s aborted bid to win a captive iron ore mine.