Posco seeks expense report from Idco

Bhubaneswar: Soon after reports emerged that Industrial Infrastructure Development Corporation (Idco) is planning to take back land if pending dues are not cleared, Posco authorities have written to Idco seeking report on details of expenses.

The company has sought the details regarding the Rs 30 cr given by the company to the Odisha government. Citing that the company has paid an advance of Rs 30.34 cr to the State government for land acquisition, Posco has sought the details of heads under which the total amount has been expensed.

According to company calculations, the said amount was provided for betel vine demolition, deposit for development purposes, police base camp infrastructure, trench cutting and construction of road along with compensation for land acquired in nine villages.

In its letter, Posco has sought the vouchers of all the expenses and the utilization certificate. In another letter the company has also sought refund of Rs 11.21 cr from Idco. According to Posco, it had paid Rs 13.52 cr to the state government for acquisition of 438 acre non-government land.

According to reports, earlier the Odisha Industrial Infrastructure Development Corporation (Idco) has written letters to both the local administration and Posco authorities warning them that it would take back the 1,703 acre of land which were acquired for the project. Posco needs 2,700 acre of land for the 12-million tonne per annum project.

But the State government has so far handed over 1,703 acre to the company while keeping the remaining 1,000 acre with Idco. Source said Posco is yet to pay Rs 54 crore 22 lakh as premium for the acquired land and Rs 18 crore 79 lakh as net payment value of unreserved forest land to Idco.

Though Idco had sent letters to Posco CMD in January 2014, followed by reminders for payment of the due premium, the steel behemoth has not cleared the payments so far.