More than two months has passed since the Union Environment and Forests Minister, Mr Jairam Ramesh, granted certain conditional clearances for the proposed mega steel plant project of Posco in Orissa. But the Naveen Patnaik Government has so far not been able to give an assurance to the Centre stating that there were no other traditional forest dwellers in the forest land that comes within the selected site. While imposing 28 additional conditions as part of the environmental clearance to Posco's steel-cum-captive power plant and 38 additional conditions for environmental clearance for the company's captive minor port, both near Paradip in Jagatsinghpur district, Mr Ramesh had on January 31 this year sought a pointed assurance from the State Government in keeping with its obligations under the Forest Rights Act, 2006. Happy over the conditional clearances granted by the Centre, top officials of the State Government had come forward to say that they would soon send their assurance on the issue of implementation of the Forest Rights Act. But no assurance has been given to the Centre till date.

According to sources, the Government has not been able to respond to Mr Ramesh's order in view of filing of fresh claims by the agitating villagers seeking rights over the forest land they had been depending on for long. Posco authorities had also welcomed the January 31 order of Mr Ramesh. They were also hopeful that the project, which had suffered inordinate delay, would finally start moving. But sources in the company said on Wednesday that nothing was in their hands as the matter was between the Centre and the State Government. The company has since decreased its staff strength as no work had started on the project site so far.

Further, the State Government has also not been able to renew the memorandum of understanding which it had signed with Posco for the established of the steel plant and the port in June, 2005.

The MoU had expired in June last year.

Meanwhile, Posco Pratirodh Sangram Samiti, which has been opposing land acquisition for the proposed steel mill, has intensified its agitation by holding public meetings and ensuring filing of individual petitions seeking rights over forest land.

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