Posco Gets Approval for $12 Billion Steel Complex in India After Six Years

Discussion in 'Economy & Infrastructure' started by nrj, Jan 31, 2011.

  1. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

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    Posco, the world’s third-largest steelmaker, received approval for its $12 billion factory complex in India, paving the way for the nation’s single-biggest foreign investment six years after it was proposed.

    The South Korean company’s 12 million metric ton mill, to be built in three phases in the eastern state of Orissa, was cleared with 28 additional conditions including limits on the use of water, the environment ministry said on its website. Approvals were also given to divert 1,253 hectares of forest land for the project and a captive port.

    The plant, the nation’s first overseas steel investment, has been delayed since 2005 because of resistance from farmers unwilling to give up their land. The farmers will hold rallies at the site starting tomorrow, Prasanth Paikare, a spokesman for opposition group Posco Prathirodh Sangram Samiti, said by phone from the eastern city of Bhubaneswar in the state.

    “We’re trying to garner nationwide support for our movement,” said Paikare, who represents 25,000 farmers who will be affected by the project. “There’ll be no land or water left for us to survive.”

    Posco shares fell 1.7 percent to 454,000 won at the end of trading in Seoul. The stock declined 21 percent last year, compared with a 22 percent gain in the benchmark Kospi index.

    Panel Overruled

    The future of the mill came under doubt after three of four members of a government panel in October suggested that initial permits given to Posco be canceled because of flaws in studies to determine the project’s effect on the habitat. A separate report by Meena Gupta, the head of the panel, asked for conditions to be added to the existing clearances.

    “How can the minister overrule the panel’s recommendation?” Paikare said.

    In August, the environment ministry rejected a proposal by billionaire Anil Agarwal’s Vedanta Resources Plc to mine bauxite at Niyamgiri hills in the same state, hampering a planned $8 billion expansion.

    ArcelorMittal, the world’s largest steelmaker, is also facing delays for two $10 billion mills, one each in Orissa and in neighboring Jharkhand state. Projects by Tata Steel Ltd., India’s biggest maker of the metal, in the two states and in Chhattisgarh, and by JSW Steel Ltd. in Jharkhand have also been delayed on land issues.

    Bloomberg
     
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  3. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

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    Conditional green clearance for Posco

    After putting the project on hold last year, Union Environment Minister Jairam Ramesh today granted conditional clearance for South Korean major Posco’s $ 12 billion steel mill project in Orissa.

    The Ministry, while granting conditional green clearance for steel-cum-captive-power plant and a captive minor port, however, sought Orissa Government’s assurances before it can give final approval for diversion of 1253 hectares of forest land for the project, mooted as the single biggest foreign direct investment in India.

    “The environmental clearance for captive port is being accorded with 32 additional conditions over and above stipulated in the original environmental clearance of May 15, 2007,” the order signed by the Minister said.

    Mr. Ramesh also asked Orissa government to give a categorical assurance that those claiming to be dependent on or cultivating the land in the Posco project area do not belong to the other traditional forest dwellers (OTFD) category under the Forest Rights Act, 2006.

    This, according to him, would make it clear that there are no legally tenable claims of non-tribals wanting recognition as OTFDs under the FRA.

    “Final approval of diversion of 1253 hectares of forest land for the Posco project would be granted as soon as this assurance of the State government is received by the MoEF,” the Minister said.

    In August last year, Environment Ministry had directed the Orissa government to stop land acquisition for Korean steel giant Posco because it violates the Forest Rights Act.

    The step was taken on the basis of a ground report submitted by a three-member committee set up by the Environment and Tribal Affairs Ministries.

    The State government and Pohang Steel Company (POSCO), signed an MoU on June 22, 2005 for setting up an integrated steel plant of a total capacity of 12 million tonnes per annum at Paradeep in Jagatsinghpur district.

    The plant would be located on the north-western bank of the Jatadharmohan river creek, 12 km south of the Paradeep Port requiring a total of 1620.496 hectares of land of which 1253.225 hectares is forest land and would affect eight villages in Erasama block of Kujang Tehsil.

    The MoU also envisaged that the company would develop and operate a mining project in areas allocated by the government; a transportation project which includes a dedicated railway line, road and port; integrated township and water supply infrastructure.

    But the project was delayed over green issues and protests by local residents who alleged that the setting up of plant would affect their largely agriculture and forest-based livelihoods.



    The Hindu
     
  4. Rahul92

    Rahul92 Senior Member Senior Member

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    Let's see the main points
    Last year, a government panel said that environmental clearances for the plant be scrapped. Critics say the project will exhaust iron deposits in 20 years.

    India earlier rejected plans by mining giant Vedanta to extract bauxite in Orissa saying it would damage the local environment.

    Monday's approval spells out 28 "extra conditions" for the steel plant and 32 conditions for the port.

    They include the company spending a share of profits on corporate social responsibility, ensuring green cover at the plant site, and restrictions on construction of the port in sensitive coastal areas.

    Earlier, the environment ministry set up a panel to investigate if Posco's project had been complying with the country's green law, including rehabilitating and resettling local people displaced by it.

    Three of the panel's four members had recommended that environmental clearances for the project be cancelled, saying there were flaws in the manner in which it was being implemented.

    Based in the port city of Paradip, it is expected to create nearly 50,000 jobs.

    But it has been opposed by many groups who argue that Posco will exhaust Orissa's iron ore resources in two decades while creating lasting environmental damage.



    http://www.bbc.co.uk/news/world-south-asia-12322280
     
  5. Rahul92

    Rahul92 Senior Member Senior Member

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    THE MOST IRKING POINT OVER HERE IS THAT The project will exhaust iron deposits in 20 years guess then what may happen
     
  6. SHASH2K2

    SHASH2K2 New Member

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    While India hardsells itself at Davos as a favoured destination among emerging economies like China, Brazil, Mexico and Indonesia among others, Environment Minister Jairam Ramesh’s “environment sensitive policies” seem to be driving foreign direct investments (FDI) away from the country.

    At least this is what the Reserve Bank of India suggests — in its quarterly review of economy released on Monday -as one of the key factors affecting “investors’ sentiment.”

    The RBI records an “almost 36 per cent” dip in inward FDI during the first half of the current fiscal (April-September 2010). The RBI, in its report, points out that inward FDI during this period stood at only about $12.6 billion as against $19.8 billion inward flow witnessed during the same period last fiscal.

    That it was not a global phenomenon is borne out of the fact that FDI inflow into other emerging economies during this period was up in the range of 6-53 per cent.

    “Net FDI flows to India declined by almost 36 per cent, year-on year, during April-September 2010. According to the latest estimates of UNCTAD (January 2011), FDI flows to major EMEs like China, Brazil, Mexico and Thailand recorded increases in the range of 6-53 per cent in 2010. Notably, Indonesia recorded about a three-fold rise in FDI inflows,” says the chapter on External Economy.

    “A major reason for the decline in inward FDI is reported to have been the environment sensitive policies pursued, as manifested in the recent episodes in the mining sector, integrated township projects and construction of ports, which appear to have affected the investors’ sentiments,” RBI said.

    This is an apparent reference to Vedanta’s projects in Orissa (mining), Lavasa Lake City (integrated townships) and POSCO’s captive port in Orissa.

    “Added to this (environment sensitive policies) are the persistent procedural delays, land acquisition issues and availability of quality infrastructure,which remain at the centre of the Government’s policy focus,” RBI said.

    The RBI report says that FDI to India has declined by about 25 per cent from $25.3 billion to just about $19 billion during April-November 2010 period of this fiscal even as global forecasts suggest net FDI flow to emerging economies will rise by about 11 per cent in 2011.

    The government has been sitting on introducing amendments to the Land Acquisition Act under pressure from its ally Mamata Banerjee, who has used land as a major issue in her political campaign against the CPM .
     
  7. Bangalorean

    Bangalorean Stars and Ambassadors Stars and Ambassadors

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    1. Jairam should go a little easy - and make environmental clearance faster and easier.
    2. Mamata Bannerjee should be shot.

    These two actions will help a great deal.
     
  8. Rahul92

    Rahul92 Senior Member Senior Member

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    I don't know why guys are after Jairam ramesh he is the only person who takes his portfolio seriously in cabinet but i'm still irked about exhaustion of iron deposits in next 20 years
     
  9. Mad Indian

    Mad Indian Proud Bigot Veteran Member Senior Member

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    Posco likely to start work on Rs 52,000 crore steel plant in July

    Posco likely to start work on Rs 52,000 crore steel plant in July - The Times of India

     

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