The chief minister of Orissa state, Mr Naveen Patnaik said that he expects India's environment ministry to grant permission soon to South Korean steelmaker POSCO to clear forest areas to set up a USD 12 billion steel plant.

Mr. Patnaik after meeting federal coal minister Sriprakash Jaiswal told reporters that "The state government is making the report, which will be sent to the center shortly.”

He added that "It will certainly come through. It is one of the country's biggest foreign direct investment projects.”

Mr Patnaik said his government is also seeking an increase in the coal royalty rate to 20% on an ad valorem basis from 13% currently.

(Sourced from online.wsj.com)