The Hindu Business Line : Land acquisition a major hurdle for POSCO project in Orissa

Bhubaneswar March 15 With the Korean steel major POSCO expressing concern over the delay in implementation of its 12-million tonne mega steel project in Orissa's Jagatsinghpur district, the State Government is now working overtime to facilitate the work.

The project has been delayed by more than six months. The project is now facing hurdles on two counts - acquisition of land for the project site in Jagatsinghpur and prospecting licence for the Khandadhar iron ore mines in Keonjhar district.

The opposition from the people in three gram panchayats in Jagatsinghpur seems to be growing by the day. Despite a section of the people extending its support to the proposed steel mill, the authorities have so far not been able to enter the area to complete the paper work with regard to the land acquisition process.

Sharp divisions

The project has created sharp divisions among the locals aggravating the situation in the wake of the recently held three-tier panchayat elections in the State. As the situation remains tense, the authorities have not been able to conduct re-polling in as many as 14 polling booths in the area.

The elections in the State were held in five phases last month.

The company has not been able to take possession of any land in the area despite making payments for 1,135 acres that had been allotted to it by the Government a few months ago.

Although this land was purely Government land, a vast portion of it had been encroached by the people. The company, which requires a total of 4,004 acres for the project and its captive port, can start ground levelling work only if it gets possession of about 3,000 acres.

Khandadhar mines

With regard to mines, the State Government has already forwarded POSCO's application to the Centre recommending grant of prospecting licence for Khandadhar mines. However, there has not been much progress. A team of government officials have gone to New Delhi to clarify their stand on the queries raised by the Mines Ministry.

The issue has got further complicated with Kudremukh Iron Ore Company Ltd filing a petition in the High Court questioning the State Government's decision recommending POSCO's case for Khandadhar mines.

The Court has since ordered status quo on the issue. The top brass of POSCO and the State Government were hopeful that opposition to the project would weaken after the recent lifting of the one-year-old road blockade agitation by the tribals Kalinga Nagar in Jajpur district.

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