Posco seeks more time for Orissa land

New Delhi, December 6: Posco Korea has sought more time to the Board for approval of the Special Economic Zones to acquire land for a steel plant in Orissa.

This comes on the heels of a visit by a delegation from the company to Karnataka, which is attracting investments in the steel.

Posco India Private Limited is looking for a third time extension of approval of the board headed by Commerce Secretary Rahul Khullar. The council is likely to take a decision on 15 December. The steel giant plans to set up the Rs 51,000 million rupees Kujanga integrated plant near Paradip port.

Senior officials from the Ministry of Commerce said, "The board approval must consider the circumstances that led to delay in land acquisition. When it approved the project, the developer gets a year to acquire the land and the rules for granting SEZ, provides for two extensions of one year each. "

Areas that received approval in principle to complete land acquisition within a year of approval, while a special economic zone formally approved the land under ownership with you to make tax-free enclave in a within three years.

Approval in principle was granted to the proposed Posco steel of Orissa in October 2006. Subsequently, two extensions were granted in 2007 and 2008. The last extension was valid until 25 October.

"The developer has requested a further extension indicating they are committed to the project, due to certain issues in the acquisition of a large tract of land for a multi-product SEZ, which have not been able to fulfill the requirement minimum land within established time period, "officials said.

Posco India sources said they were committed to the project in Orissa, and a visit from company officials, hosted by the Karnataka government was an "exploratory" trip - that does not mean that "it would abandon the project in Orissa" .

After many delays and resistance by local people, the Supreme Court had allowed Posco Orissa to allow construction of the plant in woodlands.

Of the 4.004 acres to Posco Allott by the state government, 3,300 hectares are forest land.