12-Nov-2013
South Korean steel major Posco has got time till next year to acquire land and disburse compensation for its proposed multi-product Special Economic Zone in Odisha.
The Board of Approval for SEZs, which decides on issues related to setting up and functioning of the zones, gave extension to the project, approved way back in October 2006. This is the fourth extension given to the project, with the last one lapsing last month.
Since Posco proposes to invest $12 billion in the SEZ, one of the largest foreign direct investments to be brought into the country by a company, it is also in India’s interest to give it more time, a Commerce Ministry official told Business Line.
The multi-product SEZ, which is to be developed by Posco-India Private Ltd in Odisha’s Jagatsinghpur district, has been facing a rough run in the State. Issues related to environment and forest clearances as well as refusal by locals to give land have held up the project, which is proposed to be spread over 1,620.49 hectares (4,000 acres). “BoA members agreed that there was evidence that Posco has remained engaged with the project over the years and was trying to get the tangles sorted out. It was, therefore, decided to extend its in-principle approval by another year,” the official said.
The SEZ project proposes to produce 63,48,000 tonnes of finished steel products per year and provide direct employment to about 18,000 people and indirect employment to 30,000 more.
The developer had applied to the BoA for further extension of approval by one year on the ground that land was not encroachment-free till date and that the encroachment removal and compensation disbursement processes were still in process.
The State Government has so far handed over physical possession of 1,704 acres and the company is expected to get another 1,000 acres soon, Posco-India’s General Manager Hak Soo Kim said in a letter to the Industries Department.
Source:- thehindubusinessline.com
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