Update: A DNA report the next day has this to say:

The favourable stand taken by the expert appraisal committee (EAC) on the POSCO steel plant in Orissa does not ensure an automatic green signal to the project, environment minister Jairam Ramesh has said.

EAC’s positive recommendations are seen as a precursor to the ministry’s clearance for a project. Set up under the environment impact assessment notification of 2006, the committee assesses a range of issues related to a proposed project and recommends whether or not to grant approval to it. The ministry generally goes by its recommendation.

Ramesh clarified that a final decision on POSCO would be taken only after two weeks. The response has again put the fate of India’s biggest foreign direct investment project in doubt.


Following is from a report in DNA.

After running into several hurdles, the Rs51,000-crore POSCO steel plant project in Orissa has finally received the green signal from environment minister Jairam Ramesh. The decision comes as a big relief for the Indian industry which has been under tremendous pressure due to objections raised by the ministry over environment issues.

The steel project, being promoted by South Korean steel major POSCO in Jagatsinghpur district of Orissa, is the biggest foreign investment in the country. It was put on hold after the ministry cited violations of environment and forest laws by the company. The decision of the expert appraisal committee (EAC) of the ministry followed several public hearings and meetings with officials of POSCO India limited and the state government.

The EAC, however, has imposed tough conditions — running into 80 clauses — on the promoters. The most important of these is that at least 5% of the total cost of the project should be earmarked for corporate social responsibility. This means, POSCO will need to set aside at least Rs2,000 crore for this purpose only.

The committee also announced the resettlement and rehabilitation policy for tribals and fishermen to be affected by the project. Of 4,004 acres of the project area, 3,566 acres is revenue forest land. The company has acquired nearly 100 acres for resettlement of 418 families. The compensation for betel vine growers has been doubled and fishermen would get Rs2,00,000 per acre of prawn pond. Earlier, there was no compensation norm for fishermen.

The committee agreed that the plant area of 4,000 acres is compact for a 12 MTPA integrated steel plant with a captive power generation capacity and a port. It said construction of the port and development of greenery within the plant on 1,000 acres (25% of plant area) should commence simultaneously with the plant’s construction and be completed within eight years.

The project proposes establishing an integrated steel plant which will have an initial capacity of four MTPA and final capacity of 12 MTPA. It will have a captive port and a power plant of 400 MW. The EAC agreed with the seasonal basis on which the clearance was recommended in 2007 but insisted that on the basis of comprehensive environment impact assessment (EIA) report placed before it, aspects set out in subsequent paragraphs of these minutes must be revisited during the implementation of the project and conformity to norms verified and reported to the ministry.

The promoters have been asked to take steps to check vehicular pollution during transportation of raw material and finished products as well as dust emission during loading and unloading.

Raw material shall be stacked at earmarked sites in sheds/stockyards with wind breakers/shields and secure of fire hazard.