Posco hopes to start work on site soon

Despite two failed deadlines, South Korean steel major Posco has expressed firm optimism on a quick start to its construction activities.

The company plans to complete land purchase by the end of this year, which will pave the ground for further construction. "It may require four to five more months from July to start work at the proposed site," said Posco-India Chief Managing Director Soung Sik Cho.

The company has revised its earlier schedule of starting production (phase-I) by the end of 2010 to the first half of 2011 because of delays in land acquisition and mining and forest clearances. "We may get six to seven months late," said an official.

The project was divided into three phases scheduled for 2010, 2013 and 2015 respectively, each for a capacity of 4 million tonnes.

For the acquisition of 3,100 acres of the government land, the forest diversion proposal is already undergoing examination by the ministry of environment and forests (MoEF), after which the formal handover of the land can be done. "It might take two months," sources said.

"We will be able to get around 1,135 acres of encroachment-free land by October, following which construction will start soon," added the official. The strategy to start work on conducive lands is a common approach by Posco and the state to avoid any further delays.

The company has also clarified its stand on the issue of its executives leaving the place being seen as Posco's withdrawal from India.

"This is only a transit phase. A part of the MoU states that 97 per cent of the workforce will be Indian. More Korean people will come, but the extent will not be more than 3 per cent ever. Moreover, some executives have left because of company calls," the source said.