After eight years of wait,Posco’s Odisha plant gets environment clearance and it will take at least 4.5 years to commission its mega steel plant

Bhubaneswar: POSCO India, the Indian subsidiary of South Korean Steel Company POSCO has estimated that it’ll take 4.5 years time to commission its 8 MnTPA project at Jagatsinghpur District of Odisha. Similarly it will need 7 years to start production from the Khandadhar mines in Odiaha that was recently recommended by the state government for grant of mining lease on behalf of the company. The company has sent a statement to the state government on the possible timeline of its steel and mining project in the state.

After obtaining NGT clearance and re-validation of environment clearance, 18 months will be required for land filling which will be followed by construction activities of the steel plant requiring another two years. After that, one more year is required, said the statement from POSCO India, for commissioning and testing of the plant.

The company will require 4 years for commencement of first phase of mining operation which includes 3 years for processing mining lease including forest and environment clearance and another one year for first phase mines development. The mines can be fully operational by another 2 years thereafter, said the statement of POSCO India.

During the gap of commissioning and production from mines, the steel major will arrange iron ore on its own, said the statement.

Optimistic about progress of POSCO India’s Rs. 52,000 crore Greenfield steel project, State Government on 11 January said it would sign a fresh tripartite agreement with the South Korean steel major as the validity of the original MoU lapsed three years ago. “The State Government will sign a fresh agreement with POSCO and POSCO-India for setting up the proposed mega steel mill near Paradip,” Steel and Mines Minister Rajani Kant Singh said while describing the Centre’s environmental clearance as a positive sign for the country’s biggest FDI project.

Though the State Government had signed the MoU with Posco-India way back in 22 June, 2005, its tenure lapsed after five years in 21 June, 2010. Since then, there is no formal MoU with POSCO for the proposed plant. Mr.Singh said the fresh agreement would be signed based on a guideline given by the Centre.