The South Korean Pohang Steel Company (Posco) leaving Odisha has finally been confirmed with the Industrial Infrastructure Development Corporation of Odisha (Idco) receiving back all the land allotted to the firm for setting up the country’s largest FDI steel project near Paradip.
Notably, the Posco-India had requested the Idco to take back its 2,700 acres of land provided to it near Paradip for setting up a 12 MTPA steel firm at an investment of `52,000 crore. Earlier Industries Mishra Debi Prasad Mishra had confirmed about the Posco’s intention in response to the State Government’s request to the steel major to pay pending dues of about `82 crore towards forest land diversion and cess.
The company had cited its failure to start work for the proposed plant as the reason for its decision. It had too told the National Green Tribunal (NGT) that the work could not proceed due to legal hurdles.
Notably, the Posco had signed an MoU with the State Government on June 21, 2005 for setting up its mega steel project over 4,004 acres of land.
However, the company changed its plan and wanted only 2,700 acres for setting up the 8 MTPA plant in the first phase in wake of the stiff opposition to the land acquisition by locals. Subsequently, it had been provided 1,700 acres of land.
The uncertainty over the project started when the Union Government amended the Mines and Minerals Development and Regulation Act in January 2015, making a provision that mines would be allotted only through auction routes. The Act stood on the way of direct allotment of Khandhar iron ore mince to the Posco.
The Posco leaving Odisah makes one point clear that the State Administration has failed to retain the largest ever FDI, which would have changed the industrial scenario in Odisha, feel experts.