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#Goodnews – Posco confirms scrapping Odisha project, acquired land for POSCO project under IDCO land bank

Posco’s letter is seen as the first official communication marking the scrapping of the project

rural, village, women, posco

The land acquisition was inordinately delayed due to agitation by the locals, which often took a violent turn
It’s official now that South Korean major has scrapped the plan to set up a 12-million tonne (mt) mill in Paradip, It has written to the state that it wants to surrender the allotted for the project.


It is the second big-ticket foreign direct investment (FDI) project to leave Odisha, after walked out of its project in 2013.


“We have received a letter from expressing its intention to surrender the land”, an official of the state industries department said.


Though all activity on the plant came to a halt two years ago, leading to speculations of the firm pulling out of the venture, both and the had denied it. Therefore, Posco’s letter is seen as the first official communication marking the scrapping of the project. had signed an agreement with the state in June, 2005, seeking 4,004 acres of to set up the project. The acquisition was delayed due to agitation by the locals, which often took a violent turn.


Finally, the could acquire 2,700 acres in 2013 for the firm to set up an 8-mt mill in the first phase. Of this, the managed to transfer 1,700 acres to


But before the work could start, the central amendment in the Mines and Minerals Development and Regulation Act in January, 2015 sealed the fate of the project. The amended Act made it mandatory for to go through the auction route to get captive mines, dashing its hopes of getting an iron ore mine on a preferential basis according to the agreement. To make matters worse, the did not renew the tenure of the agreement, which expired in 2016.http://www.business-standard.com/article/companies/posco-closes-last-chapter-in-odisha-project-117031700810_1.html

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Comment (1)

  1. K SHESHU BABU

    This is the victory of the people who relentlessly fought for their lands risking their lives. They should be complemented for their suvcessful attempt in driving company out of their lands

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