Fast track Posco project,urges South Korea

Pitching for expediting various clearances for its virtually grounded project,South Korea today asked India to factor in the enormous benefits the Poscos Rs 54,000-crore steel project promises for the country.

Pitching for expediting various clearances for its virtually grounded project,South Korea today asked India to factor in the enormous benefits the Poscos Rs 54,000-crore steel project promises for the country.

We have to work together to find some solution. But while doing this we dont have to disregard this investment in India which will create jobs in India, South Korean trade minister Kim Jong-Hoon told reporters here.

Jong-Hoon,who is on a visit to India for reviewing the implementation of the India-Korea Comprehensive Economic Partnership Agreement (CEPA),said the investment by Posco is the biggest foreign direct investment not only from prospect of Korea but India too. This is the biggest historically and it will create thousands of jobs in the country.

He also added that it does not encroach forest land and should be given go ahead soon. The site where we try to set up the steel mill is not,in my mind,a forest area…, Kim Jong-Hoon said adding that though a large part of foreign inflows in India find their way to stock markets,what produces more value,what produces more jobs are greenfield investments and Posco is a good example.

Commerce and industry minister Anand Sharma during the occasion expressed hope that the issues stalling the clearances to the Posco project would soon be resolved.

There are certain issues. I am sure that whatever the glitches are,will be removed. Necessary clearance will come and remaining issues will get settled. $12 billion FDI and 50 thousand jobs means a lot when it comes to development, Sharma said.

South Korean company Posco,which had entered into an agreement with Orissa in 2005 for setting 12 million tonne per annum,has been facing problems in getting clearance from the environment ministry.

Story continues below this ad

It came under the environment ministry radar last year for alleged violations of Forests Rights Act. The project in Jagatsinghpur district seeks diversion of 1,253.225 hectares of forest land.

Several giant steel projects including that of ArcelorMittal and Posco could not take off for over five years now for want of necessary regulatory and other clearances.