Posco, the South Korean steel giant, finally got an environment clearance from the ministry of environment and forests on Monday. The clearance for the steel-cum-captive power plant comes with 28 additional conditions though. These conditions are over and above those stipulated in the original environmental clearance of July 19, 2007.

After putting the project on hold last year, union environment minister Jairam Ramesh granted conditional clearance for South Korean major Posco's USD 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.

"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 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 (FRA), 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 FRA.

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 northwestern 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.

With inputs from PTI

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PPSS questions MoEF clearance to Posco, to intensify stir

Questioning conditional clearance to Posco project despite adverse reports by two key committees, Posco Pratirodh Sangram Samiti (PPSS) on Monday announced plan to intensify its agitation against the mega project by the South Korean steel major.

"What is the basis of giving conditional clearance to Posco project? What is the use of spending crores of rupees from the state exchequer by setting up two committees?" PPSS president Abhay Sahu asked.

Stating that the project had been cleared due to diplomatic pressure from South Korea, Sahu alleged that the centre had "dishonored" its own laws and regulations.

They (the ministry) had violated a host of laws under Forest Conservation Act, Environment Protection Act, Coastal Zone Regulation Act and Forest Rights Act by giving clearance to Posco's steel, power and port projects, Sahu alleged.

PPSS, which had been opposing the project ever since Posco-India signed MoU with the state government in 2005, decided to hold a meeting at the proposed plant site villages tomorrow, he said.

A section of villagers supporting the project, however, were happy over the centre's decision and expressed optimism that the 12mtpa steel mill would soon come up in their area near Paradip.

"We are happy that the Centre cleared the Posco project," said Kesbah Rout, leader of the pro-project group.

Project work for Posco plant to be resumed soon: Minister

Welcoming conditional approval for Rs 51,000 crore Posco steel plant granted by environment ministry, Orissa government on Monday said project related work would soon be resumed at the proposed site near Paradip in Jagatsinghpur district.

"We welcome the decision and thank environment minister Jairam Ramesh for granting approval though the process was delayed," Orissa's steel and mines minister Raghunath Mohanty told reporters in Bhubaneswar.

Stating that the 12 mtpa plant by the South Korean steel major would give a new direction to industrialisation in Orissa, he said the MoU with Posco-India which lapsed in June last year, would be renewed soon.

Project related work which had been stopped following environment ministry's order in August last year, would be resumed soon in the proposed site near Paradip, Mohanty said.

Regarding opposition to the mega project by local people, the minister said that the issue would be tackled in a peaceful manner.

Though MoU for the plant was signed between Posco-India and Orissa government way back in June, 2005, the project failed to take off due to protest from locals and environmental issues.