Welcoming the decision, Posco India Senior General Manager Vikash Sharan said, “We reiterate our firm commitment to the project and are determined to move ahead in terms of land preparation and construction activities at full speed.”

Posco, the world’s third-largest steel producer, on June 22, 2005 entered into an MoU with the Orissa Government for the steel plant in the state. Posco counsel Mukul Rohtagi contended that the state government-owned Orissa Mining Corporation had agreed to supply uninterrupted iron ore and other minerals for its steel project and had identified mines in the western part of the state, some 300 km away from its project site. “Unlike bauxite mines, there is no shortage of iron ore mines as India exports more than one million tonnes. The company can source raw materials on its own and can buy the same from the open market,” he said, adding “We are not dependent on prospecting licence.”

Posco’s total iron-ore requirement would be pegged at about 600 million tons for a span of 30 years once its plant reaches the optimum production capacity of 12 million tons. Rohtagi also submitted that it required a total area of 1620.496 hectares for the plant site which comprises 1253.225 hectares of forest land.

Senior counsel K K Venugopal, appearing for Orissa government, also supported Posco in saying that not only the state but the whole country would benefit from the project.

Posco contended that the Ministry, while giving clearance, had stated that 25 per cent of the land would be utilized for green coverage as the company expected to grow 2 million trees inside the project area as it had done in Gwangyang Steel works where it had planted 1.9 million trees. It also added that it had necessary clearances from Orissa Pollution Control Board.

... contd.