Posco not to pull out of Orissa: Govt

Orissa government said on Wednesday Posco-India was unlikely to pull out of the state in the wake of halting of work on the proposed Rs 51,000 crore steel project following allegations of violation of green norms.

Updated: Nov 17, 2010, 19:28 PM IST

Bhubaneswar: Orissa government said
on Wednesday Posco-India was unlikely to pull out of the state in the wake
of halting of work on the proposed Rs 51,000 crore steel
project following allegations of violation of green norms.

"There is no such proposal from the company. They
(Posco) might have a separate proposal in Karnataka. That does
not mean the company is pulling out of Orissa," Steel and
Mines Minister, Raghunath Mohanty said.

A Posco-India spokesman said that the steel major had
already signed an MoU with Karnataka government for setting up
a 6 mtpa steel plant in that state. The Karnataka project had
nothing to do with the port-based project near Paradip in
Orissa.

Claiming that the state government had completed its
work for implementation of the 12 mtpa steel project, Mohanty
said about 1,000 acres of the 4,000 acres land had already
acquired when the Centre dashed a "cease work" notice based on
the N C Saxena Committee report.

The state government was hopeful and certain that
the South Korean steel major would set up the Greenfield steel
mill after getting clearance from the union environment and
forest ministry, the minister said.

PTI