Bhubaneswar: Due to weak demand of steel in major country of the world especially China, world's fifth largest steel company Posco cut it's sales and investment forecast for this calender year. In 2014 Seoul based company cut down it's investment plan outlay by 16 percent to 3.3 trillion won. Company earlier planed to invest 3.7 trillion won on various projects. Won is the exchange currency of Korea.
Here a obvious question arise about the fate of Posco India's largest integrated steel plant to be build in Odisha's Jagatsinghpur district. This project from beginning always faced many hurdles like land acquisition, getting statutory approvals, local people's anger and many more. State government try hard to transfer required land for first phase construction of the plant. But due to local people's opposition it will not happen smoothly. If Posco will get required land to start construction in 2014 will it able to arrange all money? As the parent company did not specify in which project or region it will cut down it's investment but Asia will not get much investment. In a statutory filling company may have tried to express this kind of speculation.
If required investment not available, then Posco's Odisha project going to delay some more years.
Posco had signed MOU with Odisha government during 2005 to construct plant in 4000 acres land. It promised to invest 52,000 crores for the project. Company cleared a major hurdle for this project with getting environment clearance in January this year. But their has a condition for the company to spend for social commitment. That commitment will raise the project cost by 600 million dollar. Company has to arrange that amount during plant construction.
Posco's integrated steel plant and port project was to originally come up on some 4,000 acres in the coastal town of Jagatsinghpur. However, environmental clearance and land procurement held up the project since 2005. It needs 2,700 acres to commence work on first phase of the project, while the state government has already transferred 1,700 acres to it.
The steel project had received initial clearance from the Environment Ministry in 2007 and final approval was granted in 2011. The National Green Tribunal (NGT), a quasi-judicial body, however suspended the permit in March 2012 citing environmental concerns.
The environmental clearance for the project comes nearly nine months after a government-appointed panel of experts recommended reinstating an earlier environment clearance given to the steel project.
Posco's environment clearance for the proposed port is still pending.
As per a Posco if everything goes as planned, the Phase 1 of the project might be commissioned in 2018 while Phase II would be completed three years after completion of Phase I, and Phase III will be commissioned within three years after Phase II. The project will include iron ore mine development over 30 years (total 600 million tonnes) at captive mines located in the Keonjhar and Sundergarh districts of Odisha, as well as development of related infrastructure.
Last year, facing inordinate delays in land acquisition and local opposition, Posco scrapped its proposed Rs 30,000 crore project in Karnataka.
If required investment not available, then Posco's Odisha project going to delay some more years.
Posco had signed MOU with Odisha government during 2005 to construct plant in 4000 acres land. It promised to invest 52,000 crores for the project. Company cleared a major hurdle for this project with getting environment clearance in January this year. But their has a condition for the company to spend for social commitment. That commitment will raise the project cost by 600 million dollar. Company has to arrange that amount during plant construction.
Posco's integrated steel plant and port project was to originally come up on some 4,000 acres in the coastal town of Jagatsinghpur. However, environmental clearance and land procurement held up the project since 2005. It needs 2,700 acres to commence work on first phase of the project, while the state government has already transferred 1,700 acres to it.
The steel project had received initial clearance from the Environment Ministry in 2007 and final approval was granted in 2011. The National Green Tribunal (NGT), a quasi-judicial body, however suspended the permit in March 2012 citing environmental concerns.
The environmental clearance for the project comes nearly nine months after a government-appointed panel of experts recommended reinstating an earlier environment clearance given to the steel project.
Posco's environment clearance for the proposed port is still pending.
As per a Posco if everything goes as planned, the Phase 1 of the project might be commissioned in 2018 while Phase II would be completed three years after completion of Phase I, and Phase III will be commissioned within three years after Phase II. The project will include iron ore mine development over 30 years (total 600 million tonnes) at captive mines located in the Keonjhar and Sundergarh districts of Odisha, as well as development of related infrastructure.
Last year, facing inordinate delays in land acquisition and local opposition, Posco scrapped its proposed Rs 30,000 crore project in Karnataka.
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