Posco confirms scrapping Odisha proj in letter to Industries deptt

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Bhubaneswar: Posco authorities have asked the Odisha government to take back the 2,700 acre land acquired for setting up of a 12-million tonne (mt) steel mill in Paradip citing its failure to start work for the project, said Industries Minister Debi Prasad Mishra today.

Informing newsmen on the letter sent by Posco, Mishra stated, “As the 2,700 acre land were acquired by IDCO on behalf of the Industries department from 2008-10 for the proposed Posco project, a letter was sent earlier to the South Korean steel company asking it to clear Rs 82 crore dues towards cess. In its reply, Posco has said the company is not interested to take possession of the acquired land and pay the remaining amount. Therefore, the company requested the Odisha government in the letter to take back the acquired land.”

The minister further said, “In the letter, Posco has cited its failure to start work on the proposed 12-mt steel plant project in Paradip, as required by the lease agreement conditions, to be the reason for the request made to the Odisha government to take back the acquired land.”

Mishra mentioned, “The chief minister has approved a proposal made by the Industries department to keep the 2,700-acre land acquired for the Posco project under the IDCO land bank.”

 

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