Posco project gets conditional nod

Monday, January 31, 2011

NEW DELHI - Union Environment Minister Jairam Ramesh on Monday gave a conditional clearance to South Korean steel giant Posco for the 12 billion dollar steel cum power plant in Orissa.
The clearance for the steel-cum-captive power plant has come with 28 new conditions that include riders such as no construction in high erosion zones and no industrial activity in coastal regulation zone.

The Environment Ministry has also given a guideline that no construction shall be undertaken in the high erosion zone.

A Ministry of Environment and Forest (MoEF) statement said Posco would have to fulfil all the additional conditions, including a study of the water requirement, maintaining ambient air quality and a green area of 25 per cent of the total project area.

The company has been asked to submit detailed maritime environment conservation plan to the ministry. The company has also been asked to assess the impact on fishing communities.

Further, the company has been asked to promote nesting of the Olive Riddle turtles. It has also been entrusted with mangrove protection.

Posco will have to invest two per cent of its net annual profit for welfare of the region.

The clearance comes as a boost for the foreign investment climate after a series of setbacks for big ticket industrial projects.

Posco was among several corporations, including Vedanta Resources, which have come under the MoEF scrutiny putting the ministry in conflict with others in the government who have been pushing for rapid industrialisation. (ANI)

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