Idco sets ball rolling for Posco project survey

Idco has acquired 2772 acres of land to facilitate establishment of an 8 mtpa steel mill by Posco in the first phase

The land acquisition arm of the state government, Odisha Industrial Infrastructure Development Corporation (Idco) has invited expression of interest (EoI) to conduct socio-economic survey for rehabilitation of displaced families affected by the Posco project.

Idco has acquired 2,772.05 acres of land to facilitate establishment of an eight million tonne per annum (mtpa) steel mill by Posco India in the first phase. This includes 2,193.52 acres de-reserved forest land and 578.53 acres government land.

The South Korean steel major had proposed to set up a 12 mtpa steel project that needed 4,004 acres. But it had later redesigned the project following prolonged agitation by locals protesting land acquisition and sought 2,700 acres of land in the first phase to start construction of a 8 mpta steel plant.

The land has been acquired under Kujang and Erasama tehsils in Jagatsinghpur district in 10 villages — Dhinkia, Nuagaon, Gobindpur, Jatadhar, Polanga, Bhuyanpal, Noliasahi, Bayanala Kandha, Sandhakuda and Badagapur.

“The socio economic survey for rehabilitation of displaced families should be conducted as per the Odisha R&R (rehabilitation & resettlement) policy, 2006 strictly in accordance with the guidelines issued by the revenue & disaster management in ts notification dated April 24, 2008. The survey work should be completed within 60 days from the date of issue of work order,” said an Idco notice.

Out of the total land acquired for the Posco project, Idco has handed over 1,703.56 acres to the company. For handing over additional 1,088.59 acres to Posco, Idco has set two conditions.

First, the South Korean company has to pay land premium of Rs 54.22 crore to Idco.

Second, for the de-reserved forest land, NPV (net present value) amounting to Rs 18.79 crore is to be deposited by Posco India. NPV is the amount the user agencies need to deposit as per the Supreme Court order in 2002 for diversion of forest land for non-forest use. It includes the cost of the land along with tangible and intangible benefits of the forest area and is charged at Rs 5.8 lakh to Rs 9.2 lakh per hectare depending on the type and density of the diverted forest land.

After the Union ministry of environment & forests (MoEF) granted the Stage-II approval for forest clearance to Posco steel project in December 2009, land procurement work started on July 25, 2010. Compensation was paid to owners of betel vines, prawn hatcheries and fruit bearing trees as per the decision of the Rehabilitation & Periphery Development Advisory Committee (RPDAC). Till date, 1,118 betel vines have been demolished in five villages — Nuagaon, Polanga, Bayanalakanda, Gobindpur and Noliasahi.

Compensation of Rs 24.40 crore was distributed among the villagers towards cost of uprooting betel vines, two prawn ponds and horticulture trees spread over the de-reserved government land.

On August 5 2010, the MoEF directed the state government to stop land procurement work of Posco India but again re-accorded final approval of Stage-II on May 4, 2011. Thereafter, land procurement work had resumed on December 26, 2012 and was completed in June 2013.

Idco has executed lease deed for 558.51 acres of non-forest land acquired in seven villages- Dhinkia, Gobindpur, Nuagaon, Bhuyanpal, Polanga, Bayanalkanda and Noliasahi. Possession of 401.98 acres has been handed over to Posco India.

The balance land is in Gobindpur and Dhinkia villages and is yet to be handed over by the Jagatsinhgpur district collector. The state government has decided against acquisition of private land for the Posco project.