With little progress in the establishment of the proposed steel project by Korean steel major Posco near Paradip, the fourth meeting of the India-Korea joint investment promotion committee (JIPC) is scheduled to be held in New Delhi on Monday after more than three years.
While the steel project is facing stiff opposition from the local people, the State Government has made substantial changes in the raw material supply policy for the projects whose MoUs have lapsed and are waiting for renewal.
The State Government’s recent decision of not giving assurance to steel makers on raw material supply in revised MoUs has led to a situation of uncertainty about mega projects like Posco.
The MoU that Posco had signed with the State Government for establishment of a 12- million tonne capacity integrated steel plant with a proposed investment of Rs 51,000 crore lapsed on June 21, 2010.
The last meeting of the Indo-Korean JPIC was held in Seoul on September 3, 2009. South Korea Government had then requested Government of India to grant iron ore exploration rights to Posco and right to operate an iron factory in the State.
Land diversion:
Meanwhile, the Ministry of Environment and Forests has given approval for diversion of 2,959 acres of forest land for the project. The State Government has already acquired more than 2,000 acres. Though the company requires another 700 acres, the Government is facing opposition from the local people.