Economic Times reported that in a move to appease protesting locals, the Odisha government has decided against acquiring about 438 acres of private land for the steel plant proposed to be set up by POSCO near Paradip.

Steel and mines secretary, DK Singh told ET that "We have decided to withdraw the notification in compliance with the High Court's interim order.”

The state government's response came in the wake of a report sought by the National Human Rights Commission on clashes between villagers and contractors on December 14th 2011, that led to the death of one person and injured 25.

The High Court had in October 2011 stayed a land acquisition notification, pointing out several irregularities, including the violation of fundamental rights of land owners in the project area.

The Comptroller and Auditor General of India too had made stinging observations that the state government had acquired land for public purpose but was using it for private companies such as POSCO.

The administration was accused of backing the contractor, Sakhel whose "private army" fought a pitched battle with the POSCO Pratirodh Sangram Samiti supporters to forcibly build an approach road for the POSCO steel project.

The NHRC had issued a notice to the state home department, which asked the steel and mines department to clarify on the issue of violence in the POSCO project area. The steel and mines department in a letter to the home department has made it clear that it would not acquire the private land, said Mr Raghnath Mohanty minister for steel and mines.

The state government further clarified that it would take steps to ensure livelihood for the affected villagers who grow betel vines, as part of confidence building exercise.

The official said that state government would also take all possible steps to implement the steel project though peaceful means.

Source - Economic Times

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