Mr Jairam Ramesh environment minister has said that final clearance for South Korean steelmaker POSCO’s project at Jagatsinghpur in Orissa, will have to wait till settlements rights under Forest Rights Act 2006 is complete.

Consent under the Forest Dwellers Act is crucial as the project has been delayed on account of protests by the local people. POSCO had indicated that it needs about 1,600 hectares for its project in the state, of which 1,173 hectares is forest.

Sources said that the ministry plans to send team too undertake due diligence on the issue of settlement of forest rights. Sources said there is cause to suspect the Jagatsinghpur collector’s report which said that “No claim for settlement of rights from tribals and traditional forest dwellers has been received.”

Villages such as Dinkhia have not allowed officials to step into their villages for the last five years, so it unlikely that the district collector would have been allowed to hold a public hearing. Further, two villages including Dinkhia held a gram sabha in the first week of February, where the POSCO project was rejected.

In response to a written question in the RS, Mr Ramesh said that “Environmental clearance for setting up an integrated iron and steel plant along with a captive power plant near Paradip, Jagatsinghpur Orissa by POSCO India Orissa was accorded on July 19th 2007, subject to stipulation of environmental safeguards. One of the clearance conditions stipulated was obtaining of the forest clearance for diversion of forest land under the Forest Conservation Act prior to the commencement of construction at the work site.”

On December 29, the South Korean steel maker was given final approval for the diversion of 1,253 hectares of forest land. This land was required by the company for its long-delayed INR 54,000 crore India project. In January, the Centre clarified to the Orissa government that the forest approval given to the South Korean steelmaker for its project is subject to clearance under the Environment Protection Act.

Mr Ramesh said that “In January 2010, the Central government informed the Government of Orissa that the said forest clearance issued is subject to the settlement of rights under the Forest Rights Act 2006 and no forest land shall be handed over to the user agency before settlement of rights under the above mentioned Act.”

(Sourced from ET)