Korean steelmaker Posco?s $12-billion mega plan to set up a steel plant in the country is expected to make some headway shortly with the steel ministry saying it may seek a speedy environmental clearance for the project. ?If need be, we will take up the matter with the ministry of environment and forests for the speedy clearance of Posco?s Orissa project,? steel minister Virbhadra Singh told reporters on the sidelines of a Assocham conference on steel sector.
Hinting at the resolution of environment issues within a month, steel secretary Atul Chaturvedi said, ?Posco issue would be resolved soon, may be in a month?s time.?
The environment ministry, headed by Jairam Ramesh, had earlier asked the state government to stop land acquisition for the Posco project saying it was in violation of certain green norms.
The Korean steel giant requires about 4,000 acres to build the plant which would have an annual production capacity of 12 million tonne.
The world?s third largest steel producer signed an agreement with the Orissa government five years ago to build one of the country?s largest steel manufacturing unit. The project has, however, failed to take off as local landowners have refused to part their farm and homes for the project.
In the face of strong protests thus stalling the work for building the steel plant, Posco has started looking for an alternative to make their presence in India. It is in talks with state-owned steel producer Steel Authority of India (SAIL) to form a joint venture to build a steel plant with annual capacity of 1.5 million tonne.
Meanwhile, industry captains on Wednesday said that steel prices may increase next month due to revival in demand in view of the end of the monsoon season and upcoming festive season.
?Prices of steel have stabilised globally…I think the prices have bottomed out. We see steel prices firming up from here,? SAIL chairman CS Verma said.