South Korean POSCO's USD 12 billion steel mill project in India could be cleared soon after a panel investigating a breach of law in acquiring land for the plant submits its report on August 16.

A top official said that optimism for the project, now delayed by over three years, has risen, given the fact that its progress is being monitored by the prime minister's office as a test case reflecting the country's investment climate.

The federal official, part of the decision making process, said that "POSCO is not as big a problem (as some other projects awaiting clearance). We expect the 4 member committee's report to be submitted on August 16 after which a decision will be formally announced.”

POSCO wants to build the mill and mine iron ore in the Orissa. It signed a memorandum of understanding in June 2005 for the plant, which was to be built in three phases by 2016, with production scheduled to begin by the end of 2011 at the completion of the first phase.

(Sourced from Reuters)