The land acquisition for POSCO's proposed USD 12 billion steel plant in India's eastern state of Orissa is unlikely to resume before July 12 as the state government will be busy organizing security and facilities for a major religious festival.

A person familiar with the matter said that "My assessment is land acquisition could start on July 12 or 13, though the administration hasn't officially announced any date for resumption yet. As far as protests are concerned, the state government continues to deal with great restraint.”

Land acquisition for POSCO has picked up pace since late May when the environment ministry approved the project. However, after acquiring 2,000 acres of farm land, forests and houses peacefully, the government ran into fierce protests in three villages with 1,700 acres as residents refused to vacate their houses and farms. Political parties and activists have joined the protesters, halting land acquisitions from the second week of June.

The person said work to construct a boundary wall around 2,000 acres already acquired by the Orissa government has also been stalled as local villagers want the building work to be contracted out to them, instead of any private firm.

He added that "The construction work would need INR 500 million to INR 600 million the kind of money that villagers would find difficult to get. The government is talking to them and would sort out the matter soon.”

(Sourced from dowjones.com)