With the fate of South Korean steel major Posco's project in Orissa hanging in the balance, all eyes are now on the Forest Advisory Committee (FAC) meeting scheduled in Delhi tomorrow.
Though the N C Saxena Committee and subsequently the Meena Gupta Committee gave adverse reports on Posco's proposed 12 million tonnes per annum steel project near Paradip, in Jagatsinghpur district, the Orissa government is hopeful that the country's biggest FDI project will not die a premature death like a separate bauxite mining project involving UK- based Vedanta Resources.
"Despite a number of negative reports on Posco, we are hopeful that the Centre will not take any harsh decision on the project. This is because of nature of the project and its non-implementation could create a bad image for the country," said a senior minister in the Naveen Patnaik Cabinet.
The fate of Posco's steel mill became more uncertain after a majority in the four-member committee headed by Meena Gupta suggested withdrawal of the clearances given to the project.
Earlier, the Saxena Committee had made a similar recommendation, which led to the stoppage of activities at the project site. "The Centre issued stop work order at Posco project site when most crucial land acquisition was in full swing," said a senior official. He added that the government had acquired about 1,000 acres of land within a few days.
The outcome of the FAC meeting is keenly awaited by all concerned. "We hope the FAC meet will allow works at the proposed plant site area," said Anadi Rout, the leader of a local pro-Posco group.
In contrast, Abhay Sahu, the president of the Posco Pratirodh Sangram Samiti (PPSS), said, "We are confident that the FAC will respect majority views of the Gupta Committee, which suggested withdrawal of clearance for the Posco project."
Apart from the local people and the state government, the executives of Posco-India are also anxiously waiting for the outcome of the FAC meeting.
"We have been sitting idle ever since the company signed the MoU to set up the greenfield steel mill here. We hope that the FAC will not withdraw clearance accorded to the project," said a senior Posco-India executive.
Prime Minister Manmohan Singh's scheduled visit to South Korea next month to attend a summit could also be taken into consideration before the Centre takes any action against the project, pointed out a senior bureaucrat, who added that the PMO's efforts to clear the hurdles before the Posco project were no secret.
As such, industry insiders were optimistic about implementation of the Posco project.
The FAC meeting is significant for the state government, as it will take a decision on filing a special leave petition challenging the Orissa High Court's July 14 judgment against the project in the Supreme Court after learning the outcome.
In its verdict, the HC had set aside the state government's decision recommending Posco-India for the grant of the license for the Khandadhar iron ore reserve in the state.
The FAC is also likely take a decision on the state government's request to resume work at the project site. Most recently, the state government had written a letter urging the Centre to allow work at the project site.
