Posco to begin with 8 million tonne plant

BHUBANESWAR: Posco India CMD Yong-Won Yoon on Wednesday said that the company will set up 8 million tonne capacity steel plant near Paradip in Jagatsinghpur district with the available land and expand whenever the total requirement of 4004 acres are transferred to it.The original plan of 12 mt capacity plant is still there, but the company has changed it to three modules of 4 mt each, Yoon told mediapersons after a two-hour meeting with Chief Minister Naveen Patnaik and officials.As per the Government’s statement, it has so far acquired 2,000 acres for the project. Of this, 500 acres have been transferred to the company. He said  1,500-acre land is yet to be transferred.Yoon said during discussions that the company is willing to set up 8 mt capacity plant on 2,700 acres. The Government has so far acquired 2,000 acres and will soon acquire 700 acres, the Chief Minister’s Office stated.The verdict of the National Green Tribunal (NGT) on March 31 suspending the environmental clearance granted to the project on January 31, 2011 had come as a jolt to the country’s single largest foreign direct investment venture.The tribunal had pointed out that the MoU for the project is for production of 12 mt steel per annum, but the environment impact assessment (EIA) report has been prepared only for 4 mtpa in the first phase.Asked whether Posco will prepare a fresh EIA for 12 mtpa after the NGT’s verdict, Yoon said the company is discussing the issue with the Ministry of Environment and Forest (MoEF). Yoon’s meeting with Naveen assumed significance with the report of the company’s intention to downsize the capacity from 12 mtpa to 8 mtpa.The Posco CMD said till now the company’s investment plans remain the same at $12 billion. However, it may change with the availability of land and time span of the project. The company will review the cost of the plant soon as it will definitely change with the time span.Yoon said Posco has already submitted the revised MoU for renewal, prepared in consultation with the Government. It is for the Government to decide on its renewal now, he added. The Government and Posco had signed MoU for establishment of 12 mt capacity steel plant on June 22, 2005. The MoU expired on June 22, 2010.