Even as there is nationwide media hype over the Centre’s environmental clearance to the Posco India Greenfield steel plant project, still doubt remains whether the country’s biggest ever FDI could be implemented.
It is a positive sign that after eight years of wait, the company has got environmental clearance. However, other hurdles still remain in the path of the South Korean steel major.
The project is yet to get the forest clearance. A case in this regard has been pending in the National Green Tribunal (NGT). It may be mentioned that the 2,700 acres of land required for the first phase of the project come under the forest land category.
Unless the project gets forest clearance, it should not be considered that the hurdles are over. There are controversies over the mines, water, port and other issues as well. Besides, the main hurdle of land acquisition and resistance from the local people is there. The company was yet to take up Corporate Social Responsibility (CSR) activities and settle the issues relating to the people to be affected by the project.
The people who were earlier supporting the project have by now turned opponents as the company was yet to address their grievances. The Government and the company were yet to announce the price per acre of land acceptable to the affected people.
Most pertinent is that the Government is yet to renew the MoU with the company even though it has lapsed three years ago.
“The State Government will sign a fresh agreement with the Posco -India for setting up the proposed mega steel mill near Paradip,” Steel and Mines Minister Rajani Kanta Singh said while describing the Centre’s environmental clearance as a positive sign.
Singh said the fresh agreement would be signed based on a guideline given by the Centre. “We have sought certain clarifications from the company before signing the pact,” he said, adding the issues could be sorted out across the table.
He, however, said the project work could continue even without having any agreement with the company.
On delay in implementation of the project, the Minister said, “Though it is said that both the Centre and the State were keen for the project, we do not feel such encouragement from the UPA Government. However, it’s a good sign that it has issued the environmental clearance at long last.”
He claimed that the State Government had recommended prospecting licence (Pl) in favour of Posco way back in 2006. However, it was returned to the State again by the Centre for review of the recommendation after considering all applications for Khandadhar iron ore reserve.
Meanwhile, the State Government has already handed over 1,703 acres of land to Posco-India for the purpose and another 1,000 acres of land is ready to be given, said Jagatsinghpur Collector Satya Kumar Mallick.