PTI reported that POSCO India is now comfortable about its proposed INR 51,000 crore steel project in Orissa, a day after its compensation package was approved by a committee set up by the state government to iron out land acquisition issues related to the project.

Mr Gee Woong Sung director of POSCO India on the sidelines of an MoU signing ceremony said that “Now we are comfortable.”

He said that “POSCO's Orissa project has been hanging fire since 2005 on account of staunch resistance from the local population. Subsequently, the state government set up the Rehabilitation and Peripheral Development Advisory Committee to iron out the vexatious issues. With the RPDAC approving the compensation package at its meeting in Jagatsinghpur yesterday, the company now feels it will be able to proceed with the project.”

Mr Sung, who on behalf of the company signed a MoU with the state government for setting up an Industrial Training Centre in Ersama block of Jagatsinghpur district, said that the steel major was waiting for renewal of its MoU for the original project.

He said that the company's MoU with the Orissa government for setting up 12 million tonne per annum mega steel plant near Paradip lapsed on June 22nd 2010 and the document is yet to be renewed. The original MoU was signed on June 22nd 2005. The MoU between the 2 parties needs to be renewed before work can commence on the project.

(Sourced from Press Trust of India)