THE CAVEATS POSCO will have to invest 2% of its net annual profit for the region’s welfare It has been asked to submit a detailed maritime environment conservation plan It must promote nesting of Olive Riddle turtles and ensure mangrove protection The MoEF has sought a categorical assurance from the Orissa Government that the Forest Rights Act had not been violated while acquiring land for the project

Undoubtedly, projects such as POSCO have considerable economic, technological and strategic significance for the country. At the same time, laws on environment and forests must be implemented seriously. — Jairam Ramesh Environment Minister

Tribune News Service
New Delhi, January 31
The Environment Ministry today granted conditional clearance to the South Korean steel giant Pohang Steel Company’s (POSCO’s) $12-billion (Rs 51,000 crore) steel mill project in Orissa. The project includes a captive port.

The industry is ecstatic over the decision, but environmentalists are crying foul, saying that clearance holds no meaning in the absence of institutional structure or capacity.

“We are ready to start work on the 12 million tonnes per annum (MTPA) project as soon as the entire 4,000 hectares of land is leased out to us. The Orissa government has already transferred about 600 hectares to us,” Posco India vice-president Vikas Sharan said.

In a detailed order posted on the ministry’s website, Environment Minister Jairam Ramesh says: “Undoubtedly, projects such as that of POSCO have considerable economic, technological and strategic significance for the country. At the same time environment and forest laws must be implemented seriously.”

The clearance for the steel-cum-captive power plant has 28 new conditions, including no construction in high erosion zones and no industrial activity in coastal regulation zone. “The permission for captive port comes with 32 additional conditions over and above stipulated in the original environmental clearance of May 15, 2007,” the order adds.

POSCO has been asked to submit detailed maritime environment conservation plan to the ministry, assess impact on fishing communities, promote nesting of Olive Riddle turtles and ensure mangrove protection. The company will have to invest 2 per cent of its net annual profit for welfare of the region.

Ramesh has also sought categorical assurance from the Naveen Patnaik government stating that the Forest Rights Act had not been violated in the land acquisition process for the project. The order said diversion of 1,253 hectares of forest land for the project would be granted as soon as this assurance is received. The additional conditions have not impressed the environmentalists, who say that the mega project was cleared because of pressure from the ‘top’.

However, welcoming the decision, industry chambers termed it a careful balance between developmental goals and growth objectives, optimal level of environment protection and concern for the human dimensions of change. “We welcome the POSCO clearance which will meet the multiple objectives,” FICCI Secretary General Amit Mitra said. The industry is relieved that POSCO has not gone the way of Vedanta and other infrastructure projects embroiled in a green tussle with the ministry. Deputy Director Centre for Science and Environment Chandra Bhushan said: “You don’t have institutional structure or capacity to ensure that conditions are followed. For me a conditional clearance has no meaning …it is just on paper.”

Chandra Bhushan says there are several contradictions in the order. “It is clearly a hasty decision,” he adds. (With inputs from agencies)