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Orissa’s Posco project gets conditional nod

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New Delhi: After putting it on hold, Environment Ministry on Monday granted conditional clearance for South Korean major Posco’s USD 12 billion steel mill project in Orissa which also includes a captive port, setting 60 additional conditions.

Environment Minister Jairam Ramesh sought categorical assurance from the Naveen Patnaik government stating that the Forest Rights Act (FRA) has not been violated in the land acquisition process for the single biggest foreign direct investment project in India comprising a steel mill, a captive power plant and a minor port.

“Environmental clearance for the steel-cum-captive power plant is being accorded with 28 additional conditions over and above stipulated in the original environmental clearance of July 19, 2007,” Ramesh said in his order.

“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

Ramesh inked the final approval for diversion of 1,253 hectares of forest land for the project with the assurance from the state government that those claiming to be dependent on or cultivating the land in the project area do not belong to the other traditional forest dwellers (OTFD) category under the Forest Rights Act, 2006.

“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.

Forest rights activists had claimed that the state government had violated the FRA by contending that the project area was free from non-tribal and other traditional forest dwellers (OTFD).

In August last year, Environment Ministry had directed the Orissa government to stop land acquisition for the project.

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.

At the same time, the Minister also adopted a middle path to ensure economic growth and also maintain green balance, saying, “laws on environment and forests must be implemented seriouly.”

The Ministry put the project under scanner in October last year after three of the four members of a review panel, recommended that initial permits given to the company be cancelled as it found flaws in its impact on the environment.(PTI)

However, Gupta’s report had suggested that additional conditions could be imposed to the existing clearances after carrying out a comprehensive and integrated Environmental Impact Assessment for both the steel plant and its captive port.

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. (PTI)

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