Posco scales down land demand

Company cuts down requirement by 1,000 acres to displace lesser number of tribals

South Korean steel major Posco is keenly awaiting finalization of the rehabilitation and resettlement (R&R) policy by the Orissa government for start of work on its proposed 12 million tonne steel project at Paradip.

"We are waiting for the finalization of R&R policy. The sooner we get the R&R guidelines from the state, it is better for us. We want to commission the first phase by December 2010", said Posco India Ltd Deputy MD Tae-Hyun Jeong.

Posco, in a bid to minimize trouble arising out of possible displacement of people on account of its project at Paradip, has cut down its land requirement to 4,000 acres from the earlier stated 5000 acres.

"The plant area has been downsized after we came to know that 2,000 less families will have to be relocated. Now just 400 families will have to be taken care of", Jeong said.

"We will try to ensure minimum displacement and offer a good package to the land outstees", he added.

The Orissa government had set up a ministerial committee to formulate a comprehensive R&R policy following the January 2 police firing at Kalinga Nagar which killed 12 tribals. The tribals were demonstrating against their displacement on account of the steel plant.

The incident had brought to the fore the growing unrest among the people displaced by the project without adequate compensation. The incident also slammed the brakes on the state's industrialization drive.

The ministerial committee set up in January to formulate the R&R policy is supposed to give its report in three months' time. Pending the finalization of R&R policy by the state government, Posco on its part has already engaged the Tata Institute of Social Sciences (TISS), Mumbai, for a social-impact study on the project.

Jeong pointed out that following Posco's announcement of Rs 51,000 crore investment plan in Orissa, around 50-60 South Korean companies have expressed their keenness to set up shop in the state. "We have requested the state to develop a 2000-acre patch close to our factory to set up downstream and ancillary industries", he said.

The Posco official said the company would have locals as 98 per cent of its employees. "Only technical and management personnel will come from Korea".

Meanwhile, Posco India Ltd MD Soung Sik Cho met Chief Minister Naveen Patnaik here yesterday and reportedly urged the latter to expedite infrastructure development and finalise R&R guidelines.

He also discussed the establishment of a training institute at Paradip to impart vocational skills to the locals to upgrade their employability in the project.