POSCO steel mill in Orissa likely to win approval: Sources
A USD 12 billion steel mill in Orissa planned by South Korea's POSCO is likely to be approved by the Indian government this month, sources said on Friday, after years of delays over environmental concerns.
January 22, 2011 / 13:43 IST
A USD 12 billion steel mill in Orissa planned by South Korea's POSCO is likely to be approved by the Indian government this month, sources said on Friday, after years of delays over environmental concerns.
Government and industry sources told Reuters on Friday the project, delayed by over three years, was likely be approved, possibly with some conditions including initial clearance for a smaller mill which will be gradually expanded.Environment Minister Jairam Ramesh, whose push to enforce green laws has brought him in conflict with industry, is deciding whether rules were violated in steps towards building the 12-million tonne capacity mill, which would be the biggest single foreign direct investment into India, in Orissa."The vibes are positive and the permission could come first for (a) 4-million tonne (mill) and then gradually it could be expanded," a government source said, speaking on condition of anonymity.Another government source said although the environment ministry had some reservations about the site of a port for the plant, it was likely to consider the project in a "holistic manner", meaning permission for the port could also be granted.Neither POSCO nor the environment ministry were immediately available for comment.POSCO wants to build the mill in Orissa, but has been delayed by environmental issues and protests by local residents who say the plant will disrupt their largely agriculture and forest-based livelihoods. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
