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Posco puts construction work of Orissa steel plant on hold

Thursday, 03 Apr 2014
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Posco has put the construction work of its Orissa integrated steel plant on hold, due to the Centre's failure to grant approvals.

The company is constructing a steel plant at Paradip, in Jagatsingpur district of Orissa, with a capacity of 12 million tpa. The project has been stuck for the last eight years on account of various regulatory hurdles and delays in land acquisition.

In January 2014, the company had commenced construction work to build a boundary wall over the area. Due to the Centre's failure to grant critical approvals, specifically a prospecting licence that it needs to start exploration of Khandadhar mine allocated to it, the company had stop the work.

Now, Posco has approached the Cabinet Committee on Investment (CCI) to allow exploration at its Khandadhar captive iron ore mine.

Apart from exploration, Posco will also have to apply for a mining lease to tap the ore. The Orissa government has already handed over 1,704 acre of land to Posco and is in the process of transferring another 1,000 acre.

Although Posco had planned to start construction work soon, the company has now decided to wait until the prospecting licence comes through.

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