Posco denies links with rehab fund

Facing political opposition for its Rs 52,000 crore integrated steel project in Orissa, Korean giant Posco today said that it had no links with US-based NGO International Watch which announced a $5 million fund for rehabilitating tribals affected by the proposed project.

A day after International Watch announced setting up of the Rs 22 crore Tribal Rehabilitation Fund to ensure "proper and humane rehabilitation," Posco's chief India representative SM Doh said, "We have nothing to do with International Watch.

"We know nothing about its activities. Nor have they contacted us on the said rehabilitation programme," he said in an obvious bid to distance himself from International Watch whose proposal comes amid criticism on the project by both the Congress and BJP, which is a partner in the ruling coalition in the state.

Doh said that his company had submitted a detailed "rehabilitation plan" to the state government as part of the project proposal under which a 12 million tonne steel project was to be built.

In its Memorandum of Understanding (MoU) with the Navin Pattnaik government inked on June 22, the South Korean steel giant had stated that it had submitted a detailed rehabilitation package for those likely to be displaced due to the project.

In its statement, International Watch said "The government of Orissa is facing strong opposition from certain quarters...Certain major domestic steel conglomerates are also opposing the project. Such opposition might derail the project.

"International Watch has been in close contact with Prime Minister Manmohan Singh, Congress President Sonia Gandhi, Orissa Chief Minister Naveen Pattnaik and various ministers and leaders encouraging expeditious infrastructure development in the state and praising their efforts in welcoming Posco," the statement said.

International Watch said it has made strong pleas to CPI(M) leaders Sitaram Yechury and Prakash Karat in favour of the Posco project. "The organisation has also been in constant touch with CPI General Secretary A B Bardhan, BJP President L K Advani and Swadeshi Jagaran Manch leadership among others."

The NGO has requested each political party to nominate a representative to the board of the Tribal Rehabilitation Fund.

"The organisation wishes to express its deep gratitude to all the leaders who are considering full cooperation and support for its efforts," the statement said.

The US-based organisation said its major goal was to facilitate the signing of the Memorandum of Agreement (MoA) between Posco and the Orissa government after the feasibility studies by the South Korean company was completed.

"If the Posco project fails to take off for some reason, it will be a great loss to Orissa as well as India. Furthermore, if the project fails, other multinationals eyeing India for investments will back off, and that will be the greatest loss," it added.