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Monday, 11 Feb 2013
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POSCO India mired in Land issues

Projex Weekly - Posco Land Issue - ProjectsToday
POSCO India’s mega steel project in Orissa is mired in land acquisition issues. POSCO and Orissa government had signed an MoU for the project way back in 2005. However, the state government’s failure to acquire the required land of 2,700 acres has made the largest FDI proposal a non-starter.

So far, Orissa government has acquired 2,100 acres of land and has transferred 546 acres to POSCO India. However, POSCO India has expressed its inability to commence the project implementation work unless it gets the required 2,700 acres.

According to the original MoU, POSCO India was to set up a 12 million tpa steel project supported by port facilities at a total cost of around Rs 50,000 crore. The total land required by integrated steel project was 4,004 acres. The delay in execution of project and the growing opposition from the local land owners made POSCO to rework the investment plans to set up a steel mill capacity of 8 million tpa spread across 2,700 acres.

Delays in the implementation of the integrated steel project in Orissa have also forced POSCO to look at other states like Karnataka, Madhya Pradesh and Gujarat for housing its steel project. POSCO is exploring possibilities of setting up a steel mill in Karnataka and a few other states. Its galvanized steel unit at Raigad in Maharashtra has already commenced commercial production and the cold–rolling steel mill at Raigad is expected to be ready in 2014.

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  • Cirus Solar Systems will set up a 6.6 MW solar based power unit in Nalgonda district, Andhra Pradesh.
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Project Developments in Infrastructure Sector

 
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  • Haryana Vidyut Prasaran Nigam (HVPNL) invited bids for fibre optic cabling package under strengthening of communication system for Haryana Vidyut Prasaran Nigam.
  • A consortium of Technip, Afcons Infrastructure and TH Heavy Engineering Berhad has secured a Rs 1500 crore contract for redevelopment process platform project in the Arabian Sea.
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  • The Jharkhand Government invited bids for construction of Kharkai Barrage in the state.
  • The Karnataka Urban Water Supply & Drainage Board (KUWSDB) invited bids for water supply scheme at Tumkur district of Karnataka.
  • B.L. Kashyap and Sons has secured contracts worth Rs 900 crore. They were,
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  • Supreme Infrastructure has secured six contracts worth worth Rs 505.25 crore. They were,
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    • Development of drainage at Digha, West Bengal
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Project Developments in Manufacturing Sector

 
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Quote of the week :
Projex Weekly - Narendra Modi - ProjectsToday

“Continuing its strong intent and resolve for setting up the planned integrated steel project in Jagatsinghpur district of Orissa, Posco India is hopeful to soon get the required land for the first- stage 8-MPTA steel plant and start land preparation work soon.”
- Yong Won Yoon, CMD, POSCO-India

 

 
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