Jairam Ramesh clears Posco project, with 60 conditions

After putting it on hold, the environment ministry today granted conditional clearance for South Korean major Posco's $12 billion steel mill project in Orissa which also includes a captive port, setting 60 additional conditions.

The Environment Minister, Mr Jairam Ramesh sought categorical assurance from the Naveen Patnaik government stating that the Forest Rights Act (FRA) has not been violated in the land acquisition process for the single biggest foreign direct investment project in India comprising a steel mill, a captive power plant and a minor port.

"Environmental clearance for the steel-cum-captive power plant is being accorded with 28 additional conditions over and above stipulated in the original environmental clearance of July 19, 2007," Mr Ramesh said in his order.

"The environmental clearance for captive port is being accorded with 32 additional conditions over and above stipulated in the original environmental clearance of May 15, 2007," the order signed by the Minister said.

Mr Ramesh inked the final approval for diversion of 1,253 hectares of forest land for the project with the assurance from the state government that those claiming to be dependent on or cultivating the land in the project area do not belong to the other traditional forest dwellers (OTFD) category under the Forest Rights Act, 2006.

"Final approval of diversion of 1253 hectares of forest land for the Posco project would be granted as soon as this assurance of the state government is received by the MoEF," the Minister said.

Forest rights activists had claimed that the state government had violated the FRA by contending that the project area was free from non-tribal and other traditional forest dwellers (OTFD).

In August last year, the environment ministry had directed the Orissa government to stop land acquisition for the project.

The step was taken on the basis of a ground report submitted by a three-member committee set up by the environment and tribal affairs ministries.

"Undoubtedly, projects such as that of POSCO have considerable economic, technological and strategic significance for the country," Mr Ramesh said.

At the same time, the Minister also adopted a middle path to ensure economic growth and also maintain green balance, saying, "Laws on environment and forests must be implemented seriously."