Steel minister Virbhadra Singh on Friday said his ministry was "keen" that the hurdles in the path of two major steel projects of Posco and Arcelor-Mittal were removed.

"We are very keen that Posco goes ahead... if the hurdles before Posco and Arcelor Mittal are removed," Singh said in his keynote address at the Governance Now Forum on "Steel and Sustainable Development" in New Delhi.

South Korean steel major Posco renewed its MoU with the Orissa government in June 2010 to set up a $12 billion plant in what is being described as the largest FDI project but it has been facing opposition from the people who will be affected by it.

Arcelor-Mittal also has similar plans for the state with a 12 million tonne producing capacity plant in the pipeline.

Singh also underlined that these two producers have the technology to use low-grade iron orre, which is produced abundantly in India.

"Until there is the technology to use low-grade iron ore, the country cannot benefit," the minister said. "We must be pragamatic in the matter," he added.

Singh has set a target of 120 mt steel production by 2012-13.

Referring to "the conflicts between investors and the displaced people", the minister mentioned an expert panel's suggestion that the affected people should be given equity in the profit.

"I have always supported policy initiatives that reduce tensions between investors and the displaced. There has to be a harmonious relationship between them," he said.

Governance Now, a fortnightly magazine, organised the forum which was sponsored by the Steel Authority of India Limited (SAIL). The forum was also addressed by C S Verma, CMD of SAIL, P K Mishra, secretary, ministry of steel, and a host of industry leaders and experts.

"If India has to grow at 10 percent, steel production has to grow from two percent to five percent," Verma noted.

"The progress made in steel production in the last 10 years is equal to the country made in the first 50 years," he added.

Talking about environmental concerns Mishra said, "A judicious approach needs to be followed."

He also advised the industry to invest more on research and development.