Posco knocks PMO''s doors

19 September 2006

Korean steel major Posco has had enough. It wants the prime minister's office to help resolve a serious land crisis over its 12-million tonne steel plant in Orissa, reports CNBC-TV18.

"We will start the construction by April next year and by 2010, we will finish the first phase of construction," said Cho Soung-Sik, chairman and managing director, POSCO India.

The company wants to keep up the pressure on the government on land and a mining lease, in the face of protests from local farmers, social activists and politicians at the plant site in Paradeep.

"We do not want POSCO at all. It will destroy the agricultural land in the area and displace many people. If government wants to set up a steel plant they should do it themselves. Funds can easily be raised," said Rabi Ray, former speaker of the Lok Sabha.

In view of such protests Posco has already reduced its land requirement by 20 per cent. But only 1,135 of 4,000 acres have been acquired, 14 months after it signed an MOU with the government.