Inter-ministerial group to review major steel projects on Mar 25

Steel Min wants MoEF to revalidate environment clearance for Posco project

The much delayed Posco steel project, the country's biggest FDI, is set to figure prominently in the agenda of the Union government's inter-ministerial group (IMG) that will take stock of existing as well as greenfield steel projects on March 25.

The Union steel ministry wants the Ministry of environment & forests (MoEF) to revalidate environment clearance (EC) for the $12 billion Posco project immediately to avoid unnecessary hue and cry raised by non-governmental organizations (NGOs) and anti-project entities during land acquisition.

Though the expert appraisal committee (EAC) of MoEF had recommended revalidation of green clearance for the Posco project in its original form on June 14 last year, the matter is still pending with the ministry.

The 12 million tonne integrated steel plant proposed by Posco India needed 4,004 acres of land. The state government had till now handed over 1700 acres but the proponent was yet to take possession.

To start construction work, Posco India needed 2,700 acres. Posco had earlier said it would commence work on eight million tonne capacity steel plant, later expanding it to 12 million tonne after receiving the residual land.

The other big ticket steel project to be reviewed by the IMG is a six million tonne greenfield project proposed by ArcelorMittal in Odisha. The memorandum of understanding (MoU) signed with the steel behemoth has lapsed since December 2011 and is pending for renewal.

ArcelorMittal had also filed seven PL (prospecting license) applications and one ML (mining lease) applications with the state directorate of mines which is pending for disposal.

Tata Steel which is setting up a six million tonne steel plant at Kalinganagar (Odisha) is also awaiting renewal of its mining leases. The company has obtained all pre-requisite approvals like environment clearance and forest clearance.

Bhushan Steel Ltd which has already operationalized a three million tonne steel plant at Meramundali near Dhenkanal, has sought urgent grant of iron ore mining leases. Since the company has decided to expand capacity to 5.6 million tonne per annum, it was not in a position to operate such a large capacity plant without captive iron ore mines. Till the time, mines are allocated, the company wants state controlled miner-Odisha Mining Corporation (OMC) to accord a dedicated linkage from OMC mines at reasonable prices.

Maharatna steel PSU- Steel Authority of India Ltd (SAIL) has urged the Odisha government to recommend compliance report in respect of its Barsua-Kalta iron ore mines for grant of Stage-II forest clearance.