Bhubaneswar, Jan 26 (IANS) Orissa Chief Minister Naveen Patnaik Tuesday assured South Korean President Lee Myung-bak that the state government will expedite the work on Posco’s proposed $12 billion mega steel plant near Paradip.
“I have just had a meeting with South Korean President Lee Myung-bak on the mega steel project by Korean steel major Posco. And I have assured him that work on the project would be expedited. I have also assured that the work will start soon,” Patnaik said on his return from Delhi.

“Since it is the biggest FDI (foreign direct investment) in the country we are trying to expedite the project. As you know the state will get huge amount of revenue once the project starts. And it will be used in various welfare schemes in the state,” he added.

Posco, one of the world’s biggest steel makers, signed a deal with the Orissa government in June 2005 to set up the project near the port town of Paradip in coastal Jagatsinghpur district, some 100 km from here, by 2016.

The steel maker requires about 4,004 acres for the project, of which 2,900 acres are forest land. The project has been delayed over two years due to various reasons, including protests by locals.

Thousands of locals have been protesting the project, saying it will displace them from their homeland and ruin their betel-leaf farms. Posco and the government maintain the project will bring prosperity and employment to the region. Asked about the local resistance, Patnaik contended that the project will bring revenue and jobs to the state.

“We are for peaceful industrialisation in the state. We must understand that it is the biggest FDI in the whole of our country. It will bring enormous amount of revenue which will be required for several development projects in the state. It will also bring jobs for our people,” he said.

There has been no progress on the ground despite the state receiving last month final clearance from the union forest and environment ministry for acquiring forest land for the project.