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Odisha government asks for land premium from Posco

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IANS Bhubaneswar
Last Updated : Apr 25 2015 | 9:13 PM IST

The Odisha government on Saturday asked steel major Posco to make an outstanding payment of about Rs.54 crore towards land premium and Rs.18 crore towards net present value (NPV) for forest land diversion.

Both the government and Posco, which is setting up a 8 million tonne steel plant in Jagatsinghpur district, are at loggerheads over the land acquisition payment.

The Odisha Industrial Infrastructure Development Corporation (Idco), the land acquisition agency of the state, has demanded Rs.54.22 crore as premium for the land acquired for the company and Rs.18.79 crore as NPV for forest land diversion.

Posco has sought details from the government about the use of money already provided for the purpose.

"The company has been asked to make payment soon," Industries Minister Debi Prasad Mishra told reporters here.

Of the total land acquired for the Posco project, Idco has handed over 1,703.56 acres to the company. For handing over an additional 1,088.59 acres to Posco, Idco has asked the steel major to make payment for land acquisition and forest land diversion, sources said.

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Meanwhile, the South Korean company has sought details from Idco about the use of Rs. 30 crore it deposited as advance for land acquisition.

The company, in a letter, also claimed to have deposited Rs. 13.52 crore for acquiring about 438 acres of private land at the site.

The company has demanded Rs.11.21 crore should be returned from the deposited amount as the government is yet to hand over the land to the company for setting up the project.

"We want to resolve every issue arising out of the land acquisition. But, Posco does not come for discussion with the government. It should come and discuss with us," a senior official of the steel and mines department told IANS.

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First Published: Apr 25 2015 | 9:08 PM IST

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