Posco project in Odisha couldn't take off even after a decade on account of delays in raw material security, land acquisition as well as other clearances.
Delays in various regulatory approvals has finally led South Korean steel giant Posco to put on hold its $12 billion steel project in Odisha. The project couldn’t take off even after a decade on account of delays in raw material security, land acquisition as well as other clearances.
In the past, both the Centre and Odisha governments have engaged in a war of words and blamed each other for the delay in setting up the Posco project and recommending mines in favour of the South Korean steel major.
– The steel maker’s proposed $12 billion project at Jagatsinghpur district in Odisha for producing 12 million tonne per annum (MTPA) steel was to be the largest FDI in India.
– POSCO has cut a number of jobs in Odisha, given up real estate and not rebuilt temporary site offices that were burned down by people protesting against land acquisition by the company.
– Farmers have lost their farmland to the project and have even exhausted the compensation money.
– Apart from the delays, in a fresh blow to the company this year, the Centre said Posco will have to participate in auction to get iron ore mines to feed its facility instead of direct allotment as assured earlier. This may have a negative impact on other steel majors investment in India.
With agency inputs