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The state government has initiated steps for revalidation of Coastal Regulation Zone (CRZ) clearance to the captive port of Posco. The clearance was given in May 2007.
The government has also forwarded the Posco’s fresh application for CRZ clearance for its steel plant discharge pipeline to the Odisha coastal zone management authority.
The CRZ clearance for the port, which lapsed in 2012, is required for start of construction on the project. Once approved, the clearance will help the company in getting Environmental Clearance (EC), which had also expired last year.
Though CRZ approval is not a pre-condition for grant of environment clearance, in practice CRZ is sought before granting the EC. Environment Clearance is the final clearance for start of all kinds of construction activity in any area.
In 2006, Posco had submitted the Environment Impact Assessment (EIA) report and applied for CRZ clearance before the state government and received the approvals in 2007. However, since both CRZ and EC are valid for five years, revalidation of these clearances were necessary after 2012.
The steelmaker also chose to file a fresh application this time for CRZ approval of the discharge pipeline after the expert committees appointed by the Union Ministry of Environment and Forest (MoEF) in 2010 had objected to the grant of EC by the ministry without this clearance.
The National Green Tribunal (NGT) , while hearing an environment rule violation case against Posco in March 2012, had said that ‘the final order regarding forest clearance dated January 31, 2011 made by the MoEF shall stand suspended till fresh review.”
The tribunal said, the memorandum of understanding between the Odisha government and Posco stated the project was for production of 12 million tonnes of steel per annum (mtpa), but the EIA report had been prepared for just four mtpa capacity in the first phase and hence steps should be taken for preparation of EIA for entire 12 mtpa plant.
It had directed the MoEF to review afresh the clearance for the project and attach "specific conditions" which Posco would have to follow in a “defined timeline”.
The company has said, it will start work with 2,700 acre land for the first phase of the steel plant having eight million tonne a year capacity. It will expand the capacity to 12 mtpa as and when it received the rest of the required 4,004 acres land.
