In a belated bid to pep up investor sentiment by getting landmark projects rolling, the government has granted environmental clearance to South Korean firm Posco’s Rs.52,000 crore steel plant in Odisha — the largest ever FDI project in India.
Along with the Posco steel plant project, the ministry of environment and forests also cleared the 800 mw Tawang II hydro project billed at around Rs.6,000 crore. The decisions come in the wake of Veerappa Moily replacing Jayanthi Natarajan as environment minister with a clear brief to unlock stalled projects.
The Posco proposal considered by the environment ministry deals with the steel plant while the associated port project will be taken up at a later date. Similarly, the process of mining clearances for mining iron ore at Kandadhar is on and is expected to be completed. The Posco plant was an embarrassment for India not only in terms of its ties with South Korea but also in the larger context of its ability to resolve internal roadblocks in infrastructure development. It was only recently that Posco pulled out of a Rs.30,000 crore project in Karnataka due to delays.
The Tawang project is proposed on the Tawangchu river and is expected to benefit all northeast states and generate an estimated 3600 million units of electricity annually. The project will require diversion of 116 hectares of forest land and the government has stipulated that the afforestation area will be twice as much.
Project developer National Hydroelectric Power Corporation will transfer the cost of compensatory afforestation to the state forest department in the Tawang project.
The Posco clearance comes a week before South Korean President Park Geun Hye's India visit and comes with riders like “social commitments” that can raise costs.
Along with the Posco steel plant project, the ministry of environment and forests also cleared the 800 mw Tawang II hydro project billed at around Rs.6,000 crore. The decisions come in the wake of Veerappa Moily replacing Jayanthi Natarajan as environment minister with a clear brief to unlock stalled projects.
The Posco proposal considered by the environment ministry deals with the steel plant while the associated port project will be taken up at a later date. Similarly, the process of mining clearances for mining iron ore at Kandadhar is on and is expected to be completed. The Posco plant was an embarrassment for India not only in terms of its ties with South Korea but also in the larger context of its ability to resolve internal roadblocks in infrastructure development. It was only recently that Posco pulled out of a Rs.30,000 crore project in Karnataka due to delays.
The Tawang project is proposed on the Tawangchu river and is expected to benefit all northeast states and generate an estimated 3600 million units of electricity annually. The project will require diversion of 116 hectares of forest land and the government has stipulated that the afforestation area will be twice as much.
Project developer National Hydroelectric Power Corporation will transfer the cost of compensatory afforestation to the state forest department in the Tawang project.
The Posco clearance comes a week before South Korean President Park Geun Hye's India visit and comes with riders like “social commitments” that can raise costs.
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