Posco project on schedule: Centre

The union government is confident that South Korean steelmaker Posco's proposed steel plant in Orissa will begin production by end-2010 as originally scheduled.

But a combination of hurdles coming in the way of land acquisition and sanctioning of mining leases had put the project back by about six months and these hurdles are not all gone.

"We are constantly monitoring the progress of Posco's project in Orissa along with the state government. The central government holds review meetings regularly and we are confident that the problems the company has been facing will be overcome shortly and the steel plant will begin production by end- 2010," steel secretary R S Pandey said..

The firm took possession of 1,135 acres of litigation free land at the proposed site in Jagatsinghpur only recently.

This was after the steelmaker had reduced its requirement to 4,000 acres from the original plan of 5,000 acres after facing hassles over land procurement.